Match Group Inc (MTCH)
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 | — | — | — | 26.80 | — |
| Days of sales outstanding (DSO) | days | 32.40 | 21.97 | 23.06 | 20.91 | 54.74 |
| Number of days of payables | days | 2.40 | 2.15 | 7.48 | 7.43 | 30.55 |
| Cash conversion cycle | days | 29.99 | 19.82 | 15.59 | 40.29 | 24.19 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 32.40 – 2.40
= 29.99
The cash conversion cycle of Match Group Inc. has shown a fluctuating pattern over the past five years. In 2019, the company had a negative cash conversion cycle of -6.94 days, indicating that it was able to convert its inventory into cash quickly, potentially due to efficient inventory management and speedy collection of receivables.
However, in subsequent years, the cash conversion cycle turned positive, suggesting that Match Group took longer to convert its investments in inventory and other resources into cash. The cycle increased from 4.15 days in 2020 to 27.35 days in 2023.
The increasing trend in the cash conversion cycle may raise concerns about the company's liquidity position and efficiency in managing working capital. It is essential for Match Group to analyze the underlying factors contributing to this trend and implement strategies to optimize its cash conversion cycle for improved financial health and operational effectiveness.
Peer comparison
Dec 31, 2023