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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.
RingCentral's Days Sales Outstanding for the
three
months ended in Dec. 2023 was 43.57.
RingCentral's Days Inventory for the
three
months ended in Dec. 2023 was 0.71.
RingCentral's Days Payable for the
three
months ended in Dec. 2023 was 25.89.
Therefore, RingCentral's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2023 was 18.39.
The historical data trend for RingCentral's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RingCentral Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Cash Conversion Cycle | Get a 7-Day Free Trial | 5.04 | -8.83 | -8.84 | 4.20 | 12.22 |
RingCentral Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
Cash Conversion Cycle | Get a 7-Day Free Trial | -3.71 | 8.46 | 16.00 | 20.53 | 18.39 |
For the Software - Application subindustry, RingCentral's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
For the Software industry and Technology sector, RingCentral's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where RingCentral's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
RingCentral's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 43.35 | + | 0.74 | - | 31.87 | |
= | 12.22 |
RingCentral's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 43.57 | + | 0.71 | - | 25.89 | |
= | 18.39 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
RingCentral (NYSE:RNG) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Thank you for viewing the detailed overview of RingCentral's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.
Sonalee Elizabeth Parekh | officer: Chief Financial Officer | 767 FIFTH AVENUE, NEW YORK NY 10153 |
Vladimir Shmunis | director, 10 percent owner, officer: CEO and Chairman | C/O RINGCENTRAL, INC., 20 DAVIS DRIVE, BELMONT CA 94002 |
John H Marlow | officer: SVP & General Counsel | C/O RINGCENTRAL, INC, 20 DAVIS DRIVE, BELMONT CA 94002 |
Vaibhav Agarwal | officer: Chief Accounting Officer | 20 DAVIS DRIVE, BELMONT CA 94002 |
Mohammed Katibeh | officer: Chief Operating Officer | 20 DAVIS DRIVE, BELMONT CA 94002 |
Tarek Robbiati | director | 6200 SPRINT PARKWAY, OVERLAND PARK KS 66251 |
Sri Srinivasan | director | C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065 |
Mitesh Dhruv | officer: CFO | 34601 CASCADES CIRCLE, UNION CITY CA 94587 |
Anand Eswaran | officer: President & COO | 20 DAVIS DRIVE, BELMONT CA 94002 |
R Neil Williams | director | C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043 |
Praful Shah | officer: SVP, Strategy | C/O RINGCENTRAL, INC., 1400 FASHION ISLAND BLVD, 7TH FLOOR, SAN MATEO CA 94404 |
Robert I Theis | director | |
Godfrey Sullivan | director | SPLUNK INC., 250 BRANNAN STREET, SAN FRANCISCO CA 94107 |
Arne Duncan | director | 182 N. UNION AVENUE, FARMINGTON UT 84025 |
Allan C. Thygesen | director | 20 DAVIS DRIVE, BELMONT CA 94002 |
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