Live Nation Entertainment Inc (LYV)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 0.77 | 26.16 | 32.96 | 28.54 | 0.89 | 23.50 | 38.15 | 45.79 | 1.89 | 58.53 | 100.77 | 86.14 | 2.37 | 38.94 | 19.45 | 25.13 | 0.53 | 35.24 | 38.77 | 35.97 |
| Days of sales outstanding (DSO) | days | 33.90 | 43.09 | 35.92 | 33.59 | 32.81 | 48.11 | 45.67 | 56.76 | 63.22 | 113.48 | 183.27 | 217.21 | 98.31 | 45.68 | 27.86 | 24.78 | 32.54 | 39.40 | 35.36 | 30.44 |
| Number of days of payables | days | 4.55 | 5.06 | 5.92 | 3.71 | 4.16 | 5.02 | 7.23 | 3.18 | 6.19 | 9.35 | 13.32 | 10.91 | 9.29 | 5.64 | 5.32 | 2.95 | 3.31 | 5.38 | 7.56 | 4.74 |
| Cash conversion cycle | days | 30.12 | 64.19 | 62.96 | 58.43 | 29.55 | 66.59 | 76.58 | 99.38 | 58.93 | 162.65 | 270.72 | 292.44 | 91.39 | 78.98 | 41.99 | 46.96 | 29.76 | 69.26 | 66.57 | 61.66 |
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 eight quarters. In Q1 2023, the company experienced an extremely negative cash conversion cycle of -309.49 days, indicating that it was able to convert inventory into cash very quickly and efficiently during that period. This was followed by a less negative but still favorable cycle in Q2 2023 at -78.25 days.
However, in subsequent quarters, the company's cash conversion cycle became positive, indicating that it took longer to convert inventory into cash. The cycle was notably positive in Q3 2022 at 274.53 days and in Q2 2022 at 122.71 days. This suggests potential issues with managing inventory and collecting receivables during those periods.
In the most recent quarter, Q4 2023, the cash conversion cycle improved significantly to -10.20 days, indicating a more efficient conversion of inventory into cash compared to the previous quarters.
Overall, Live Nation Entertainment Inc's cash conversion cycle has been volatile, with both positive and negative cycles observed. The company should focus on maintaining a consistently efficient cycle to ensure optimal management of working capital and cash flow.
Peer comparison
Dec 31, 2023