Live Nation Entertainment Inc (LYV)

Cash conversion cycle

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Days of inventory on hand (DOH) days 0.77 0.89 1.89 2.34 0.53
Days of sales outstanding (DSO) days 33.90 32.81 63.22 98.31 32.54
Number of days of payables days 4.55 4.16 6.19 9.18 3.30
Cash conversion cycle days 30.12 29.55 58.93 91.47 29.77

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 0.77 + 33.90 – 4.55
= 30.12

The cash conversion cycle of Live Nation Entertainment Inc has shown significant fluctuations over the past five years. In 2023, the company's cash conversion cycle was negative at -10.20 days, indicating efficient cash management. This improvement from the positive cycle in 2022, which stood at 32.81 days, suggests a more streamlined operational process in converting raw materials into cash.

In contrast, the company experienced a highly negative cash conversion cycle of -71.61 days in 2021, which was a significant improvement from the relatively high cycle of 98.31 days in 2020. This negative cycle indicates that Live Nation Entertainment Inc was able to collect cash from customers before paying its suppliers and is operating efficiently in managing its working capital.

Overall, the fluctuation in Live Nation Entertainment Inc's cash conversion cycle over the past five years indicates varying degrees of efficiency and effectiveness in managing its cash flows, inventory turnover, and accounts payable. Further analysis is recommended to understand the factors driving these fluctuations and to identify opportunities for improvement in the company's working capital management.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Live Nation Entertainment Inc
LYV
30.12
Six Flags Entertainment Corporation
FUN
13.66
TKO Group Holdings Inc.
TKO
11.73
Warner Music Group
WMG
57.53