Shutterstock (SSTK)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 37.24 | 38.00 | 29.70 | 22.61 | 23.90 |
| Number of days of payables | days | 4.02 | 4.33 | 3.69 | 5.79 | 1.63 |
| Cash conversion cycle | days | 33.21 | 33.67 | 26.01 | 16.82 | 22.26 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 37.24 – 4.02
= 33.21
The cash conversion cycle for Shutterstock has fluctuated over the years, indicating changes in the efficiency of its working capital management.
In 2020, the company's cash conversion cycle was 22.26 days, suggesting that it took approximately 22 days to convert its investments in inventory and accounts receivable into cash.
By the end of 2021, the cash conversion cycle improved to 16.82 days, indicating a more efficient conversion of assets into cash within a shorter period.
However, there was a reversal in the trend in 2022, as the cash conversion cycle increased to 26.01 days, suggesting a slower conversion of assets into cash compared to the previous year.
The trend continued in 2023, with the cash conversion cycle growing further to 33.67 days, indicating a significant delay in converting assets into cash.
By the end of 2024, the cash conversion cycle remained high at 33.21 days, signifying ongoing challenges in working capital management and inefficiencies in converting investments into cash within a reasonable timeframe.
Overall, fluctuations in the cash conversion cycle for Shutterstock highlight the need for the company to focus on improving its working capital efficiency to optimize cash flow and enhance overall financial performance.
Peer comparison
Dec 31, 2024