TKO Group Holdings, Inc. (TKO)
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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | 0.39 | 0.37 | 0.29 | 2.12 | 3.73 | 5.93 | 4.52 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.39 | 0.37 | 0.29 | 2.12 | 3.73 | 5.93 | 4.52 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of TKO Group Holdings, Inc. has exhibited a notable trend of decreasing over the analyzed period. The company's cash conversion cycle, which measures the time it takes for a company to convert its investments in inventory and other resources back into cash, decreased from 4.52 days on December 31, 2021, to effectively 0 days by the end of September 30, 2023.
This improvement in the cash conversion cycle signifies that TKO Group Holdings, Inc. has been efficiently managing its working capital and operational efficiency. The company has likely streamlined its processes related to inventory management, accounts receivable collection, and accounts payable payment, resulting in a more efficient cash conversion cycle.
By reducing the cash conversion cycle, TKO Group Holdings, Inc. has been able to convert its resources into cash quicker, which can positively impact the company's liquidity, working capital efficiency, and overall financial performance. This trend indicates effective financial management and operational effectiveness within the organization, potentially leading to improved financial stability and growth prospects.
Peer comparison
Dec 31, 2024