Live Nation Entertainment Inc (LYV)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.05 | — | — | 30.35 | 0.95 | 32.85 | 41.83 | 36.24 | 1.15 | 30.18 | 50.87 | 66.64 | 2.83 | 99.53 | 350.77 | 317.29 | 5.73 | 66.12 | 27.50 | 33.35 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 1.05 | 0.00 | 0.00 | 30.35 | 0.95 | 32.85 | 41.83 | 36.24 | 1.15 | 30.18 | 50.87 | 66.64 | 2.83 | 99.53 | 350.77 | 317.29 | 5.73 | 66.12 | 27.50 | 33.35 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.05 + — – —
= 1.05
The cash conversion cycle of Live Nation Entertainment Inc has undergone fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The cash conversion cycle for Live Nation Entertainment Inc started at 33.35 days on March 31, 2020, then decreased to 5.73 days by December 31, 2020, indicating an improvement in the company's efficiency in managing its cash flow. However, there was a significant spike in the cash conversion cycle to 317.29 days by March 31, 2021, and further to 350.77 days by June 30, 2021. This suggests potential issues in managing inventory and receivables, leading to increased cash tied up in the operating cycle.
Subsequently, there was a notable decline in the cash conversion cycle to 0.95 days by December 31, 2023, and further to 0.00 days by June 30, 2024 and September 30, 2024. These extremely low values indicate that Live Nation Entertainment Inc was able to efficiently convert its investments into cash rapidly during these periods, possibly through effective management of inventory, receivables, and payables.
Overall, Live Nation Entertainment Inc's cash conversion cycle experienced significant fluctuations, indicating varying levels of efficiency in managing its working capital over the analyzed period. It is essential for the company to continue monitoring and optimizing its cash conversion cycle to ensure effective cash flow management and operational efficiency.
Peer comparison
Dec 31, 2024