Match Group Inc (MTCH)
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 | — | — | — | — | — | — | — | — | 27.76 | — | — | — | 17.71 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 32.40 | 32.01 | 30.94 | 29.51 | 21.97 | 19.84 | 20.79 | 21.16 | 23.06 | 23.50 | 35.50 | 30.58 | 20.92 | 31.87 | 31.09 | 64.37 | 54.74 | 49.56 | 42.23 | 33.83 |
| Number of days of payables | days | 2.39 | 1.96 | 1.41 | 2.30 | 2.17 | 2.81 | 2.87 | 4.80 | 8.71 | 7.24 | 14.99 | 3.74 | 4.91 | 2.60 | 1.98 | 17.23 | 30.55 | 33.88 | 37.09 | 31.46 |
| Cash conversion cycle | days | 30.01 | 30.05 | 29.54 | 27.20 | 19.80 | 17.04 | 17.92 | 16.37 | 42.11 | 16.26 | 20.50 | 26.84 | 33.71 | 29.27 | 29.11 | 47.14 | 24.19 | 15.68 | 5.14 | 2.37 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 32.40 – 2.39
= 30.01
The cash conversion cycle of Match Group Inc. has shown a decreasing trend over the past eight quarters, indicating improved efficiency in managing its working capital. The company's cash conversion cycle has ranged from 27.35 days to 12.19 days in Q4 2023 and Q1 2022, respectively. This implies that, on average, it takes Match Group approximately 27 days to convert its investments in inventory and accounts receivable into cash from sales and payables settlements.
The decreasing trend in the cash conversion cycle suggests that Match Group has been able to accelerate the conversion of its assets into cash, which may signify effective inventory management and accounts receivable collection practices. This improvement may lead to enhanced cash flows and potentially strengthen the company's liquidity position. However, it is essential for Match Group to monitor its cash conversion cycle consistently to ensure ongoing operational efficiency and financial health.
Peer comparison
Dec 31, 2023