Shutterstock (SSTK)

Cash conversion cycle

		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	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	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	26.43	26.52	25.36	26.28
Number of days of payables	days	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	3.85	2.69	2.55	3.31
Cash conversion cycle	days	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	22.58	23.83	22.81	22.97

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 38.00 – 5.80
= 32.20

The cash conversion cycle of Shutterstock Inc has shown some variability over the past eight quarters. In Q1 2023, the cash conversion cycle was 12.10 days, indicating that the company took just over 12 days to convert its investments in inventory and other resources into cash receipts from sales. This was an improvement from the previous quarter, Q4 2022, where the cycle was 21.31 days.

However, the cycle increased in Q2 2023 to 19.90 days before further increasing to 28.06 days in Q3 2023. In the most recent quarter, Q4 2023, the cycle increased slightly to 28.61 days. These fluctuations suggest potential inefficiencies in managing the company's inventory, accounts receivable, and accounts payable.

Overall, the upward trend in the cash conversion cycle from Q1 2023 to Q4 2023 indicates that Shutterstock Inc may be taking longer to convert its investments into cash, potentially leading to liquidity challenges or operational inefficiencies. Further analysis of the company's working capital management practices and operational processes may be necessary to address any underlying issues.