Concentra Group Holdings Parent, Inc. (CON)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — |
| Number of days of payables | days | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Concentra Group Holdings Parent, Inc. has shown a consistent cash conversion cycle of 0.00 days for the past three years, ending on December 31, 2021, 2022, and 2023. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A cash conversion cycle of 0.00 days indicates that the company efficiently manages its working capital and operates with a rapid turnover of inventory and collections from customers. This efficient cycle suggests that Concentra Group Holdings Parent, Inc. is able to quickly sell its products, collect cash from customers, and pay its suppliers.
Having a consistently low or zero cash conversion cycle can be beneficial for a company as it implies strong liquidity, effective inventory management, and timely collection of receivables. It also indicates that the company is not tying up excess capital in its operations, which can lead to improved financial performance and flexibility.
In conclusion, Concentra Group Holdings Parent, Inc.'s stable cash conversion cycle of 0.00 days suggests that the company is effectively managing its working capital and operating efficiently, ultimately contributing to its financial strength and performance.
Peer comparison
Dec 31, 2023