Shutterstock (SSTK)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 37.26 | 37.29 | 40.31 | 39.32 | 38.00 | 35.55 | 26.58 | 20.92 | 29.70 | 23.69 | 22.21 | 20.71 | 22.61 | 22.19 | 25.33 | 26.24 | 24.06 | 27.06 | 27.59 | 25.52 |
| Number of days of payables | days | 5.50 | 9.00 | 6.40 | 5.78 | 5.80 | 4.55 | 4.15 | 5.38 | 5.05 | 3.43 | 3.13 | 3.98 | 5.79 | 3.16 | 3.56 | 4.18 | 1.65 | 2.77 | 2.95 | 2.59 |
| Cash conversion cycle | days | 31.75 | 28.28 | 33.91 | 33.54 | 32.20 | 31.00 | 22.43 | 15.54 | 24.65 | 20.27 | 19.08 | 16.72 | 16.82 | 19.03 | 21.77 | 22.07 | 22.41 | 24.29 | 24.64 | 22.93 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 37.26 – 5.50
= 31.75
The cash conversion cycle of Shutterstock has shown fluctuating trends over the periods analyzed. The company's cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales, decreased from 22.93 days as of March 31, 2020, to 16.72 days as of March 31, 2022, indicating an improvement in the efficiency of its working capital management.
However, the cash conversion cycle increased to 33.91 days as of June 30, 2024, and remained relatively high in subsequent periods, reaching 31.75 days by December 31, 2024. This increase suggests that Shutterstock may be holding onto inventory or receivables for a longer period before converting them into cash, which could potentially signal issues with inventory management or slower payment collections from customers.
It is important for Shutterstock to closely monitor and manage its cash conversion cycle as a prolonged cycle can tie up valuable resources and negatively impact the company's liquidity and overall financial health. Further analysis and action may be needed to optimize the company's cash conversion cycle and improve its working capital efficiency.
Peer comparison
Dec 31, 2024