Ziff Davis Inc (ZD)
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 | — | — | — | 8.98 | — |
| Days of sales outstanding (DSO) | days | 171.37 | 90.37 | 79.96 | 81.50 | 102.56 |
| Number of days of payables | days | 299.46 | 242.33 | 225.53 | 254.22 | — |
| Cash conversion cycle | days | -128.09 | -151.96 | -145.56 | -163.74 | 102.56 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 171.37 – 299.46
= -128.09
The cash conversion cycle of Ziff Davis Inc has shown some significant fluctuations over the years.
- As of December 31, 2020, the cash conversion cycle was 102.56 days, indicating that it took the company over three months to convert its investments in inventory and accounts receivable into cash.
- Surprisingly, by December 31, 2021, the cash conversion cycle improved drastically to -163.74 days. This negative figure suggests that the company was able to convert its investments into cash much quicker, possibly through efficient management of inventory and accounts receivable.
- Continuing the trend, by December 31, 2022, the cash conversion cycle further decreased to -145.56 days, indicating a continued improvement in the company's ability to convert investments into cash efficiently.
- However, by December 31, 2023, there was a slight increase in the cash conversion cycle to -151.96 days. Despite the increase, the company still maintained a negative cycle, indicating a strong performance in managing its working capital.
- As of December 31, 2024, the cash conversion cycle further improved to -128.09 days, suggesting that Ziff Davis Inc continued to excel in its cash conversion efficiency.
Overall, the trend in the cash conversion cycle of Ziff Davis Inc shows a positive trajectory, with the company managing to convert its investments into cash at a faster rate over the years, leading to improved efficiency and potentially stronger financial performance.