VeriSign Inc (VRSN)
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 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | 100.44 | — | 93.86 | — | 107.80 | 107.38 | 93.50 | — | 90.13 | 95.33 | 78.64 |
| Days of sales outstanding (DSO) | days | 1.31 | 1.42 | 0.86 | 1.57 | 1.54 | 1.13 | 1.72 | — | 1.59 | 3.37 | 2.82 | 1.81 | 1.45 | 2.55 | 2.77 | 1.81 | 1.34 | 1.85 | 1.56 | 1.49 |
| Number of days of payables | days | 20.21 | 16.01 | 16.99 | 17.46 | 23.12 | 17.22 | 13.82 | 12.05 | 17.82 | 14.45 | 16.46 | 13.81 | 17.11 | 12.06 | 23.06 | 22.61 | 25.00 | 21.15 | 30.33 | 21.10 |
| Cash conversion cycle | days | -18.90 | -14.59 | -16.13 | -15.89 | -21.58 | -16.08 | -12.10 | -12.05 | -16.23 | 89.36 | -13.65 | 81.86 | -15.66 | 98.30 | 87.08 | 72.70 | -23.66 | 70.83 | 66.57 | 59.03 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 1.31 – 20.21
= -18.90
The cash conversion cycle is a crucial measure of VeriSign Inc's efficiency in managing its working capital. It reflects the time taken to convert the company's investments in inventory into cash receipts from customers.
Based on the data provided, VeriSign's cash conversion cycle has varied over the past years. The company experienced a generally positive cash conversion cycle in the earlier years, with the cycle averaging around 60 to 70 days. This indicates that VeriSign took approximately 60 to 70 days to convert its investments in inventory and other resources into cash.
In contrast, towards the end of the period, VeriSign managed to significantly reduce its cash conversion cycle, with negative values recorded, suggesting that the company was able to convert its investments into cash at a faster pace. For instance, by the end of December 2024, the cash conversion cycle was around -19 days, indicating that VeriSign was able to convert its investment into cash before incurring additional costs.
These negative values in the later years could imply efficient working capital management, quicker cash collections from customers, and a more streamlined operational process. However, it is essential for VeriSign to monitor its cash conversion cycle carefully to ensure that it remains optimized for its operations and financial health.
Peer comparison
Dec 31, 2024