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Datto Holding (Datto Holding) Cash Conversion Cycle : 56.47 (As of Mar. 2022)


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What is Datto Holding Cash Conversion Cycle?

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

Datto Holding's Days Sales Outstanding for the three months ended in Mar. 2022 was 7.02.
Datto Holding's Days Inventory for the three months ended in Mar. 2022 was 72.72.
Datto Holding's Days Payable for the three months ended in Mar. 2022 was 23.27.
Therefore, Datto Holding's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2022 was 56.47.


Datto Holding Cash Conversion Cycle Historical Data

The historical data trend for Datto Holding'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.

* Premium members only.

Datto Holding Cash Conversion Cycle Chart

Datto Holding Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Cash Conversion Cycle
37.80 20.53 15.40 40.14

Datto Holding Quarterly Data
Dec18 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.38 30.83 38.31 47.14 56.47

Competitive Comparison of Datto Holding's Cash Conversion Cycle

For the Software - Infrastructure subindustry, Datto Holding'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.


Datto Holding's Cash Conversion Cycle Distribution in the Software Industry

For the Software industry and Technology sector, Datto Holding's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Datto Holding's Cash Conversion Cycle falls into.



Datto Holding 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.

Datto Holding's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=7.91+50.41-18.18
=40.14

Datto Holding's Cash Conversion Cycle for the quarter that ended in Mar. 2022 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=7.02+72.72-23.27
=56.47

* 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.


Datto Holding  (NYSE:MSP) 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.


Datto Holding Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Datto Holding's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Datto Holding (Datto Holding) Business Description

Traded in Other Exchanges
N/A
Address
101 Merritt 7, Norwalk, CT, USA, 06851
Datto Holding Corp is engaged in providing cloud-based software and technology solutions. Its platform enables partners to manage and grow their businesses serving the small and medium businesses information technology, or SMB IT, market. The company's cloud-based platform offerings include Unified Continuity, Networking and Business Management software solutions.
Executives
Emily T Epstein officer: General Counsel 101 MERRITT 7, NORWALK CT 06851
John Abbot officer: Chief Financial Officer
Robert Raymond Petrocelli officer: Chief Technology Officer 101 MERRITT 7 NORWALK CT 06851
Christopher Edward Mccloskey officer: Chief Customer Officer 101 MERRITT 7 NORWALK CT 06851
Radhesh Balakrishnan Menon officer: Chief Product Officer 101 MERRITT 7 NORWALK CT 06851
William Severance officer: Chief Accounting Officer 44 E BROADWAY BLVD, SUITE 350, TUCSON AZ 85701
Sanjay Kumar Singh officer: Chief Revenue Officer 101 MERRITT 7 NORWALK CT 06851
Austin Williams Mcchord director, 10 percent owner 101 MERRITT 7 NORWALK CT 06851
Timothy Weller director, officer: Chief Executive Officer 101 MERRITT 7 NORWALK CT 06851
Michael Glenn Fass officer: See Remarks 101 MERRITT 7 NORWALK CT 06851
Adrian T Dillon director 5301 STEVENS CREEK BLVD, MS 1A-LC, SANTA CLARA CA 95051
Jack K Dillon director 101 MERRITT 7 NORWALK CT 06851
Christine E Larsen director C/O FIRST DATA CORPORATION, FIRST DATA, 225 LIBERTY STREET, NEW YORK NY 10281
Vff Ii Gp (cayman), Ltd. 10 percent owner 4 EMBARCADERO CENTER, 20TH FLOOR SAN FRANCISCO CA 94111
Marc Evan Brown director C/O RAPID7, INC., 100 SUMMER STREET, BOSTON MA 02110

Datto Holding (Datto Holding) Headlines

From GuruFocus

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Datto to Present at Jefferies Virtual Software Conference

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Datto Appoints Emily Tabak Epstein as General Counsel

By Business Wire Business Wire 02-07-2022

Datto Holding Corp (MSP) CEO Timothy Weller Sold $1.8 million of Shares

By GuruFocus Research GuruFocus Editor 10-16-2021