Liveramp Holdings Inc (RAMP)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — 68.93 7.23 — 10.73 — — 13.11 11.71 — 5.99 7.27 6.77 16.18 11.69 9.73 6.00 10.31
Receivables turnover 3.36 3.68 3.27 3.32 3.17 3.56 3.52 3.20 2.94 3.05 3.01 2.96 2.31 2.49 2.51 2.34 2.63 2.90 2.92 2.73
Payables turnover 1.95 2.14 2.19 2.21 1.97 2.19 2.36 1.96 1.98 2.29 2.31 1.77 2.03 3.25 4.46 3.60 3.22 3.78 3.93 3.62
Working capital turnover 1.77 1.85 1.72 1.71 1.13 1.15 1.14 1.11 1.13 1.03 0.95 0.84 0.79 0.76 0.72 0.67 0.61 0.60 0.57 0.52

Inventory Turnover:
Liveramp Holdings Inc's inventory turnover ratio has seen fluctuations over the years, ranging from a high of 68.93 in March 2024 to a low of 5.99 in December 2021. The trend indicates variability in how efficiently the company is managing its inventory levels and converting them into sales. The sudden spike in inventory turnover in March 2024 may suggest improved inventory management or a change in the company's sales strategies.

Receivables Turnover:
The receivables turnover ratio for Liveramp Holdings Inc has generally been stable, with a slight increasing trend over time. The ratio ranged from 2.31 in December 2021 to 3.68 in September 2024. This indicates that the company is efficient in collecting credit sales from its customers. The consistent improvement in receivables turnover suggests that Liveramp is managing its accounts receivable effectively.

Payables Turnover:
Liveramp Holdings Inc's payables turnover ratio has shown a decreasing trend, dropping from 4.46 in June 2021 to 1.95 in December 2024. This suggests that the company is taking longer to pay off its trade payables over recent periods. A declining payables turnover ratio may indicate potential liquidity issues or changes in the company's payment policies.

Working Capital Turnover:
The working capital turnover ratio for Liveramp Holdings Inc has been steadily increasing, indicating that the company is generating more revenue from its working capital over time. The ratio rose from 0.52 in March 2020 to 1.77 in December 2024. This improvement suggests that Liveramp is using its working capital more efficiently to generate sales. A higher working capital turnover ratio signifies better overall operational efficiency.

Average number of days

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 — — — 5.30 50.52 — 34.02 — — 27.84 31.16 — 60.91 50.19 53.90 22.56 31.23 37.51 60.80 35.41
Days of sales outstanding (DSO) days 108.79 99.13 111.52 110.02 115.00 102.65 103.84 113.97 124.11 119.83 121.40 123.38 158.31 146.70 145.69 155.74 138.99 125.74 125.11 133.70
Number of days of payables days 186.90 170.63 166.69 165.13 184.95 166.83 154.78 185.77 184.46 159.05 158.21 205.98 179.74 112.18 81.78 101.27 113.26 96.46 92.93 100.88

Based on the activity ratios provided for Liveramp Holdings Inc, the following analysis can be made:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures the number of days a company takes to sell its average inventory.
- The trend in Liveramp's DOH shows fluctuations over the years, indicating changes in inventory management efficiency.
- A decrease in DOH from 35.41 days on March 31, 2020, to 5.30 days on March 31, 2024, suggests more efficient inventory turnover.

2. Days of Sales Outstanding (DSO):
- DSO indicates the average number of days it takes a company to collect revenue after a sale.
- Liveramp's DSO has exhibited volatility but generally shows a decreasing trend.
- Lower DSO values, such as 99.13 days on September 30, 2024, indicate better receivables management and quicker cash conversion.

3. Number of Days of Payables:
- This ratio reflects the average number of days a company takes to pay its suppliers.
- Liveramp's payables days have seen significant changes, with some periods showing a substantial increase in days payables outstanding.
- Higher payables days, like 186.90 days on December 31, 2024, may suggest stretched payment terms or liquidity constraints.

In conclusion, the trends in Liveramp's activity ratios suggest improvements in inventory turnover and receivables management efficiency. However, the significant increase in payables days in certain periods should be monitored to ensure sustainable vendor relationships and cash flow management.

Long-term

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
Fixed asset turnover — — — — — 19.08 100.48 84.20 66.94 51.78 42.31 45.85 47.81 47.12 43.55 37.05 31.77 27.07 23.23 19.70
Total asset turnover 0.58 0.63 0.57 0.54 0.52 0.53 0.52 0.51 0.51 0.48 0.45 0.40 0.38 0.38 0.37 0.34 0.34 0.33 0.32 0.29

The fixed asset turnover ratio for Liveramp Holdings Inc has exhibited a positive trend over the past few years, indicating increasing efficiency in utilizing its fixed assets to generate sales. The ratio has steadily increased from 19.70 in March 2020 to 66.94 in December 2022 before experiencing a sharp decline in the following quarters. This decline may signify changes in the company's fixed asset base or sales performance.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, has also shown an upward trajectory, starting at 0.29 in March 2020 and reaching 0.57 by June 2024. This suggests that Liveramp Holdings Inc has been successful in leveraging its assets to generate revenue efficiently.

Overall, the analysis of long-term activity ratios for Liveramp Holdings Inc indicates that the company has been effectively managing its assets to drive sales growth during the period under review. However, the sudden fluctuations in the fixed asset turnover ratio towards the end of the period may warrant further investigation to understand the underlying reasons and implications for the company's operational efficiency.