Liveramp Holdings Inc (RAMP)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its resources to generate sales or revenues. Let's analyze the activity ratios of Liveramp Holdings Inc based on the provided data:

1. Inventory turnover:
- The inventory turnover ratio has shown a significant increase over the years, from 31.75 in 2020 to 190.78 in 2024. This indicates that Liveramp is efficiently managing its inventory levels and selling its goods at a faster rate, which is a positive sign for the company.

2. Receivables turnover:
- The receivables turnover ratio has generally been stable over the years, ranging from 2.46 in 2021 to 3.32 in 2024. This shows that Liveramp is efficient in collecting payments from its customers, with a higher turnover indicating a faster conversion of receivables into cash.

3. Payables turnover:
- The payables turnover ratio has also shown consistency, with a slight fluctuation over the years. It ranged from 5.46 in 2022 to 9.08 in 2021. A higher payables turnover suggests that Liveramp is managing its payments to suppliers effectively and optimizing its working capital.

4. Working capital turnover:
- The working capital turnover ratio has seen a rising trend, increasing from 0.52 in 2020 to 1.71 in 2024. This indicates that Liveramp is generating more sales revenue relative to its working capital, reflecting improved efficiency in utilizing its resources to drive business activity.

Overall, the activity ratios of Liveramp Holdings Inc demonstrate a positive trend, showing efficient management of inventory, receivables, payables, and working capital, which is essential for sustainable growth and profitability.

---

Average number of days

Based on the activity ratios of Liveramp Holdings Inc provided in the table, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- The DOH for Liveramp has been fluctuating over the years, with a significant decrease from 11.49 days in 2020 to 1.91 days in 2024.
- A lower DOH indicates that Liveramp is managing its inventory efficiently by selling goods quickly and minimizing excess inventory holding costs.

2. Days of Sales Outstanding (DSO):
- The DSO for Liveramp has shown a decreasing trend from 148.28 days in 2021 to 110.02 days in 2024.
- A lower DSO suggests that Liveramp is collecting its accounts receivables more quickly, which improves cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables has fluctuated over the years, with an increase from 44.24 days in 2020 to 59.66 days in 2024.
- A higher number of days of payables indicates that Liveramp is taking more time to pay its suppliers, which can be beneficial for cash flow management and working capital.

Overall, the activity ratios indicate that Liveramp Holdings Inc has improved its inventory management efficiency, reduced its collection period for accounts receivables, and lengthened the time it takes to pay its suppliers. These trends suggest better working capital management and potential improvements in cash flow for the company.

---

Long-term

Long-term activity ratios provide insights into a company's efficiency in utilizing its assets, particularly fixed assets, to generate sales revenue. Liveramp Holdings Inc's fixed asset turnover has shown a fluctuating trend over the past five years, with a significant increase from 2019 to 2020, followed by a relatively stable performance in the subsequent years. This indicates that the company has improved its ability to generate revenue from its fixed assets, with a notable peak in 2022.

In contrast, the total asset turnover ratio, which considers all assets, also exhibits an upward trend over the same period. Liveramp Holdings Inc has shown a consistent improvement in its overall asset utilization efficiency, suggesting that the company has been effective in generating sales relative to its total assets. This indicates that the company has been successful in optimizing its asset base to drive revenue growth.

Overall, Liveramp Holdings Inc's long-term activity ratios reflect its ability to efficiently use both fixed and total assets to generate sales revenue, with an upward trend in asset turnover ratios indicating improving efficiency over the years. Investors and stakeholders may view these trends positively as they imply effective asset management and revenue generation capabilities within the company.