Liveramp Holdings Inc (RAMP)
Cash conversion cycle
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 1.91 | — | — | 7.32 | 11.49 |
| Days of sales outstanding (DSO) | days | 110.02 | 113.97 | 123.38 | 148.28 | 125.74 |
| Number of days of payables | days | 59.66 | 60.56 | 66.81 | 40.19 | 44.24 |
| Cash conversion cycle | days | 52.27 | 53.40 | 56.57 | 115.41 | 92.99 |
March 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.91 + 110.02 – 59.66
= 52.27
The cash conversion cycle of Liveramp Holdings Inc has shown a decreasing trend over the past five years, indicating an improvement in the efficiency of the company's cash management and working capital.
The company's cash conversion cycle decreased from 92.99 days in 2020 to 52.27 days in 2024, reflecting a positive trend in the company's ability to convert its investments in raw materials and other resources into cash more quickly. This suggests that Liveramp Holdings Inc is managing its working capital more effectively and efficiently.
A lower cash conversion cycle indicates that the company is able to collect cash from its customers more quickly, pay off its suppliers more slowly, and manage its inventory effectively. This can lead to improved liquidity and better financial performance.
Overall, the decreasing trend in Liveramp Holdings Inc's cash conversion cycle is a positive sign of the company's improving operational efficiency and financial health. It shows that the company is effectively managing its working capital to generate cash flows and support its business operations.
Peer comparison
Mar 31, 2024