Cross Country Healthcare Inc (CCRN)

Cash conversion cycle

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	—	1.61	1.83	2.40	2.71
Days of sales outstanding (DSO)	days	71.53	86.80	109.48	77.25	78.96
Number of days of payables	days	0.59	1.87	0.75	—	—
Cash conversion cycle	days	70.93	86.54	110.56	79.65	81.67

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 71.53 – 0.59
= 70.93

The cash conversion cycle of Cross Country Healthcares, Inc. has shown fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to 68.93 days compared to 84.41 days in 2022. This indicates that the company was able to convert its investments in inventory and accounts payable into cash more efficiently during the most recent fiscal year.

However, when comparing the current cycle to the data from 2021 and previous years, it is evident that the company had a longer cash conversion cycle in the past. In 2021, the cycle was 108.62 days, demonstrating a significant improvement since then.

It is also worth noting that in 2020 and 2019, the company's cash conversion cycle was relatively stable, with 76.24 days and 77.48 days, respectively. Overall, the trend indicates that Cross Country Healthcares, Inc. has been working towards managing its cash conversion cycle more effectively in recent years, which is a positive sign for its liquidity and operational efficiency.