Liveramp Holdings Inc (RAMP)

Cash conversion cycle

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Days of inventory on hand (DOH)	days	1.90	23.30	—	14.67	—	—	9.12	10.37	—	19.97	16.57	17.56	7.43	10.37	12.22	20.21	11.77	21.41	25.81	6.95
Days of sales outstanding (DSO)	days	110.02	115.00	102.65	103.84	113.97	124.11	119.83	121.40	123.38	158.31	146.70	145.69	148.28	138.99	125.74	125.11	125.76	108.37	114.52	107.28
Number of days of payables	days	59.37	85.29	73.39	66.72	77.29	59.72	52.10	52.66	68.21	66.12	44.35	33.86	40.80	37.63	43.65	42.82	45.28	38.41	37.38	25.64
Cash conversion cycle	days	52.55	53.01	29.26	51.78	36.68	64.39	76.85	79.11	55.17	112.16	118.92	129.39	114.91	111.73	94.31	102.50	92.25	91.37	102.96	88.59

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 1.90 + 110.02 – 59.37
= 52.55

The cash conversion cycle of Liveramp Holdings Inc has shown fluctuating trends over the last few quarters. The company's cash conversion cycle is the number of days it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates that the company is able to efficiently manage its working capital and convert assets into cash quickly.

Looking at the data provided, we can see that the cash conversion cycle has shown volatility, with some quarters exhibiting longer cycles than others. For instance, in Sep 30, 2021, and Jun 30, 2021, Liveramp had significantly longer cash conversion cycles of 118.92 days and 129.39 days, respectively. This could indicate inefficiencies in managing inventory, collections, or payments during those periods.

On the other hand, in Sep 30, 2020, and Dec 31, 2020, Liveramp had relatively shorter cash conversion cycles of 94.31 days and 91.37 days, respectively. This could imply that the company improved its working capital management during those periods, resulting in quicker conversion of assets into cash.

Overall, it is important for Liveramp Holdings Inc to focus on optimizing its cash conversion cycle to ensure efficient working capital management and maximize cash flows. Analyzing the components of the cash conversion cycle such as inventory turnover, accounts receivable turnover, and accounts payable turnover can provide insights into areas that may need improvement to shorten the cycle and enhance overall financial performance.