Liveramp Holdings Inc (RAMP)
Cash conversion cycle
| 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 |
| Cash conversion cycle | days | -78.11 | -71.50 | -55.17 | -49.82 | -19.43 | -64.18 | -16.92 | -71.81 | -60.36 | -11.38 | -5.65 | -82.60 | 39.48 | 84.71 | 117.81 | 77.03 | 56.96 | 66.79 | 92.98 | 68.24 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 108.79 – 186.90
= -78.11
The cash conversion cycle for Liveramp Holdings Inc has shown fluctuations over the years. It started at 68.24 days on March 31, 2020, increased to 117.81 days on June 30, 2021, and then decreased significantly to -78.11 days on December 31, 2024. A positive cash conversion cycle indicates that the company takes longer to convert its investments in inventory back into cash, while a negative cash conversion cycle typically indicates efficient management of working capital.
During the period analyzed, Liveramp Holdings Inc experienced a mix of positive and negative cash conversion cycles, with periods of inefficiency followed by periods of improved efficiency. This could be due to changes in inventory management, accounts receivable collection, or accounts payable practices.
It is important for the company to closely monitor its cash conversion cycle to ensure optimal management of working capital and efficient cash flow operations. By continuing to analyze and improve its cash conversion cycle, Liveramp Holdings Inc can enhance its liquidity position and overall financial performance.
Peer comparison
Dec 31, 2024