VeriSign Inc (VRSN)
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 | 1.31 | 1.54 | 1.59 | 1.45 | 1.34 |
| Number of days of payables | days | 20.21 | 23.12 | 17.82 | 17.11 | 25.00 |
| Cash conversion cycle | days | -18.90 | -21.58 | -16.23 | -15.66 | -23.66 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 1.31 – 20.21
= -18.90
VeriSign Inc's cash conversion cycle has shown fluctuations over the past five years, ranging from -23.66 days in 2020 to -15.66 days in 2021, -16.23 days in 2022, -21.58 days in 2023, and -18.90 days in 2024. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, resulting in a shorter overall cash cycle.
The reduction in the cash conversion cycle from 2020 to 2021 suggests that VeriSign Inc has improved its efficiency in managing working capital. However, the slight increase in 2022 and 2023, followed by a decrease in 2024, indicates some variability in the company's cash management practices.
Overall, VeriSign Inc's consistently negative cash conversion cycle reflects its ability to efficiently convert its investments in inventory and accounts receivable into cash, indicating strong liquidity and potential for sustainable operations in the future.
Peer comparison
Dec 31, 2024