TechTarget, Inc. Common Stock (TTGT)
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 | 101.26 | 62.28 | 74.06 | 70.80 | 98.85 |
| Number of days of payables | days | 36.21 | 25,511.58 | 15.34 | 19.39 | 42.06 |
| Cash conversion cycle | days | 65.06 | -25,449.30 | 58.72 | 51.41 | 56.79 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 101.26 – 36.21
= 65.06
TechTarget, Inc.'s cash conversion cycle has fluctuated over the years. As of December 31, 2020, the company's cash conversion cycle was 56.79 days, indicating that it took approximately 56.79 days for the company to convert its investment in inventory and receivables into cash from sales.
By December 31, 2021, the cash conversion cycle had improved to 51.41 days, suggesting a more efficient management of working capital. However, by December 31, 2022, the cycle increased to 58.72 days, indicating a potential delay in cash realization compared to the previous year.
A significant anomaly occurred on December 31, 2023, where the cash conversion cycle was reported as -25,449.30 days. This abnormal figure could be due to errors in data recording or calculation, and it is important to investigate and correct such discrepancies for accurate financial analysis.
Finally, as of December 31, 2024, the cash conversion cycle was recorded as 0.00 days, which could indicate an extremely efficient turnaround from inventory to cash, or it could also be a result of the methodology used for calculation.
Overall, fluctuations in the cash conversion cycle can provide insights into the efficiency of TechTarget, Inc.'s working capital management and its ability to generate cash from its operations. Monitoring and analyzing these changes over time can help identify potential operational improvements or risks.
Peer comparison
Dec 31, 2024