TechTarget Inc (TTGT)

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	58.07	60.45	67.91	64.52	73.84	79.75	81.30	72.87	77.66	71.93	73.28	81.00	99.06	64.45	69.06	63.98	74.23	69.99	78.75	75.36
Number of days of payables	days	8.67	7.93	5.29	4.84	5.24	11.56	12.24	3.64	6.45	5.61	8.39	6.75	13.34	5.48	6.41	5.86	7.21	7.37	3.81	7.70
Cash conversion cycle	days	49.39	52.52	62.62	59.69	68.61	68.19	69.06	69.23	71.21	66.31	64.89	74.25	85.72	58.97	62.65	58.12	67.02	62.62	74.94	67.66

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 58.07 – 8.67
= 49.39

The cash conversion cycle of Techtarget Inc. has fluctuated over the past eight quarters. In Q4 2023, the company's cash conversion cycle was 35.64 days, indicating a relatively efficient management of cash flow compared to previous quarters. Despite this improvement, there were fluctuations observed in the cash conversion cycle throughout the period, with peaks in Q4 2022 (58.16 days) and Q1 2023 (50.66 days), which may suggest potential inefficiencies in managing working capital during those periods.

Overall, the trend appears to show some variability in the cash conversion cycle, with potential room for improvement in optimizing the company's cash conversion efficiency. It is important for Techtarget Inc. to continue monitoring and managing its working capital effectively to ensure smooth operations and financial stability.