Viad Corp (VVI)

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	683.23	777.62	980.84	599.35	537.56	515.48	621.72	411.37	302.73	316.25	219.39	167.35	99.89	183.84	308.89	248.92	705.13	745.48	1,357.06	3,776.82
Days of sales outstanding (DSO)	days	38.93	41.08	44.25	39.79	39.11	0.18	67.24	59.20	70.19	83.22	71.07	51.13	16.29	11.08	13.38	34.61	37.49	42.10	46.37	41.40
Number of days of payables	days	5,208.85	5,924.18	6,565.73	4,794.78	3,639.53	—	4,202.14	3,353.84	2,457.45	2,151.80	609.99	409.30	240.79	248.97	516.30	1,222.02	3,538.53	4,082.46	6,389.86	17,946.37
Cash conversion cycle	days	-4,486.69	-5,105.49	-5,540.63	-4,155.64	-3,062.87	515.66	-3,513.18	-2,883.27	-2,084.53	-1,752.33	-319.53	-190.82	-124.61	-54.05	-194.03	-938.49	-2,795.91	-3,294.87	-4,986.43	-14,128.15

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 683.23 + 38.93 – 5,208.85
= -4,486.69

The cash conversion cycle for Viad Corp. fluctuated over the past eight quarters. In general, a shorter cash conversion cycle is desirable as it indicates that the company is able to quickly convert its investments in inventory and other resources into cash.

In Q1 2022, the cash conversion cycle was at its peak for this period at 28.31 days, suggesting the company took a relatively long time to convert its investments into cash. This was followed by a significant improvement in Q4 2022, where the cycle decreased to 18.26 days.

Throughout Q1 to Q3 2023, there was further improvement in the company's cash conversion cycle, reaching a low of 13.72 days in Q1 2023. This indicates Viad Corp. was able to efficiently manage its cash flows and operate more effectively during this period.

However, the cycle increased slightly in Q2 and Q3 2023, which may raise concerns about the company's ability to maintain its cash conversion efficiency. Overall, Viad Corp. should continue to monitor and strive to optimize its cash conversion cycle to enhance its financial health and operational efficiency.