Cross Country Healthcare Inc (CCRN)

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	—	0.85	1.11	1.67	1.61	0.58	1.09	1.47	1.83	1.29	2.47	3.20	4.20	2.58	3.97	4.94	4.87	2.26	3.49	2.96
Days of sales outstanding (DSO)	days	71.51	69.53	75.13	88.42	86.69	80.26	101.44	117.04	109.30	89.44	89.21	95.65	76.98	75.69	69.07	74.09	78.13	79.04	70.75	73.68
Number of days of payables	days	0.75	—	—	—	1.87	—	—	—	0.75	—	—	—	—	—	—	—	—	—	—	—
Cash conversion cycle	days	70.76	70.38	76.24	90.10	86.43	80.84	102.53	118.51	110.38	90.73	91.68	98.85	81.18	78.27	73.04	79.04	83.00	81.30	74.23	76.64

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 71.51 – 0.75
= 70.76

Cross Country Healthcares, Inc.'s cash conversion cycle has fluctuated over the past eight quarters. In Q1 2022, the cash conversion cycle was at its highest at 116.66 days, indicating that it took the company over three months to convert its investments in inventory and other resources back into cash. Since then, there has been a decreasing trend in the cash conversion cycle, dropping to 68.93 days in Q4 2023.

A shorter cash conversion cycle generally indicates that the company is efficiently managing its working capital and converting its assets into cash more quickly. The gradual improvement in the cash conversion cycle over the quarters may suggest that Cross Country Healthcares, Inc. has been implementing strategies to streamline its operations, optimize inventory levels, and collect receivables more effectively.

Despite the fluctuations, the company should continue to focus on reducing the cash conversion cycle further to enhance its liquidity and overall financial health. Monitoring and analyzing the factors affecting the cash conversion cycle will be crucial for Cross Country Healthcares, Inc. to sustain and improve its operational efficiency in the future.