VeriSign Inc (VRSN)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 1.54 | 1.59 | 1.45 | 1.34 | 4.81 |
| Number of days of payables | days | 23.12 | 17.82 | 17.11 | 25.00 | 32.17 |
| Cash conversion cycle | days | -21.58 | -16.23 | -15.66 | -23.66 | -27.36 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 1.54 – 23.12
= -21.58
The cash conversion cycle of Verisign Inc. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle increased to 3.32 days, compared to 2.07 days in 2022. This increase suggests that Verisign took slightly longer to convert its resources invested in inventory and accounts receivable into cash during 2023.
However, when compared to 2021 and 2020, the cash conversion cycle in 2023 was lower, indicating an improvement in efficiency. In 2021, the cycle was 3.56 days, and in 2020 it was 2.37 days. This suggests that Verisign was able to manage its cash flow more effectively in 2023 compared to those two years.
Furthermore, looking back to 2019 when the cash conversion cycle was 5.14 days, the trend shows a significant improvement in efficiency over the past four years. Despite the slight increase in 2023, the overall trend indicates that Verisign has been successful in reducing the time it takes to convert its investments in inventory and accounts receivable into cash.
Overall, while there was a slight increase in the cash conversion cycle in 2023, the company has shown improvement in managing its cash flow efficiency compared to previous years. This suggests that Verisign has been effective in optimizing its working capital management practices.
Peer comparison
Dec 31, 2023