Ziff Davis Inc (ZD)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 90.37 | 77.61 | 76.08 | 73.30 | 79.96 | 60.44 | 62.71 | 67.77 | 81.50 | 70.36 | 69.38 | 72.58 | 102.56 | 59.62 | 54.94 | 56.47 | 69.68 | 56.69 | 50.40 | 52.59 |
| Number of days of payables | days | 228.03 | 233.82 | 236.05 | 269.22 | 225.53 | — | — | — | 254.22 | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | -137.66 | -156.21 | -159.97 | -195.92 | -145.56 | 60.44 | 62.71 | 67.77 | -172.72 | 70.36 | 69.38 | 72.58 | 102.56 | 59.62 | 54.94 | 56.47 | 69.68 | 56.69 | 50.40 | 52.59 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 90.37 – 228.03
= -137.66
The cash conversion cycle of Ziff Davis Inc has shown fluctuations over the past eight quarters. The company has a negative cash conversion cycle, indicating that it is able to convert its inventory and receivables into cash relatively quickly. This implies efficient management of cash flow and working capital within the company.
In the most recent quarter, Q4 2023, the cash conversion cycle was -137.66 days, which is an improvement compared to the previous quarter's -156.21 days. This suggests that the company has been able to further optimize its cash conversion process. However, when compared to the same quarter of the previous year, the cash conversion cycle has worsened, as it was -145.56 days in Q4 2022.
Looking at the trend over the past eight quarters, the cash conversion cycle has generally been negative, indicating effective management of the company's operating cycle. However, there have been periods of increase, such as in Q1 2023 where the cycle was at its lowest point at -195.92 days. Overall, Ziff Davis Inc has been able to efficiently manage its working capital and convert its assets into cash, but it is important to monitor any fluctuations in the future to ensure consistent performance.