Life Time Group Holdings (Life Time Group Holdings) Cash Conversion Cycle : -2.71 (As of Mar. 2024)

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What is Life Time Group Holdings Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Life Time Group Holdings's Days Sales Outstanding for the three months ended in Mar. 2024 was 3.58.
Life Time Group Holdings's Days Inventory for the three months ended in Mar. 2024 was 15.02.
Life Time Group Holdings's Days Payable for the three months ended in Mar. 2024 was 21.31.
Therefore, Life Time Group Holdings's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was -2.71.

Life Time Group Holdings Cash Conversion Cycle Historical Data

The historical data trend for Life Time Group Holdings'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.

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Life Time Group Holdings Cash Conversion Cycle Chart

Life Time Group Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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-0.07

-3.36

-8.84

-8.02

-5.68

Life Time Group Holdings Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash Conversion Cycle	Get a 7-Day Free Trial													-5.16	-5.36	-6.12	-5.35	-2.71

Competitive Comparison of Life Time Group Holdings's Cash Conversion Cycle

For the Leisure subindustry, Life Time Group Holdings'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.

Life Time Group Holdings's Cash Conversion Cycle Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Life Time Group Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Life Time Group Holdings's Cash Conversion Cycle falls into.

Life Time Group Holdings Cash Conversion Cycle Calculation

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.

Life Time Group Holdings'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
	=	3.07	+	15.17	-	23.92
	=	-5.68

Life Time Group Holdings's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	3.58	+	15.02	-	21.31
	=	-2.71

Life Time Group Holdings (NYSE:LTH) 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.

Life Time Group Holdings Cash Conversion Cycle Related Terms

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Life Time Group Holdings (Life Time Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Life Time Group Holdings Inc (NYSE:LTH) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

2902 Corporate Place, Chanhassen, MN, USA, 55317

Website

https://www.lifetime.life

Life Time Group Holdings Inc is engaged in designing, building, and operating distinctive and large, multi-use sports and athletic, professional fitness, family recreation and spa centres in a resort-like environment, principally in residential locations of metropolitan areas in the United States and Canada.

Executives

Bahram Akradi	director, 10 percent owner, officer: Founder & CEO	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Erik Weaver	officer: SVP & Controller	C/O ORTHO-CLINICAL DIAGNOSTICS, INC., 1001 ROUTE 202, RARITAN NJ 08869
Robert P. Houghton	officer: EVP & CHIEF FINANCIAL OFFICER	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Teacher Retirement System Of Texas	other: Member of a group that is 10%	1000 RED RIVER STREET, AUSTIN TX 78701
Donna Coallier	director	2902 CORPORATE PLACE, CHANHASSEN MN 55317
Jon Winkelried	10 percent owner	C/O GOLDMAN, SACHS & CO., 85 BROAD STREET, NEW YORK NY 10004
Tpg Gp A, Llc	10 percent owner	301 COMMERCE STREET, SUITE 3300, FORT WORTH TX 76102
Jimena Almendares	director	C/O LIFE TIME GROUP HOLDINGS, INC., 2902 CORPORATE PLACE, CHANHASSEN MN 55317
Lnk Life Time Fund, L.p.	director, 10 percent owner	81 MAIN STREET, WHITE PLAINS NY 10601
Partners Group Private Equity (master Fund), Llc	10 percent owner	1114 AVENUE OF THE AMERICAS, 37TH FLOOR, NEW YORK NY 10036
Green Ltf Holdings Ii Lp	director, 10 percent owner	11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Simon Property Group Inc /de/	10 percent owner	225 WEST WASHINGTON STREET, INDIANAPOLIS IN 46204-3438
John Kristofer Galashan	director, 10 percent owner	LEONARD, GREEN & PARTNERS, 11111 SANTA MONICA BLVD., SUITE 2000, LOS ANGELES CA 90025
Jss Ltf Holdings Ltd	10 percent owner	MARCY BUILDING, PURCELL ESTATE, P.O. BOX 2416, ROAD TOWN, TORTOLA D8 VG1110
Lifeco Llc	10 percent owner	499 PARK AVENUE, 24TH FLOOR, NEW YORK NY 10022