Concentra Group Holdings Parent, Inc. (CON)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — |
| Days of sales outstanding (DSO) | days | 41.82 | — | — | — |
| Number of days of payables | days | 4.52 | — | — | — |
| Cash conversion cycle | days | 37.30 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 41.82 – 4.52
= 37.30
Based on the provided data, Concentra Group Holdings Parent, Inc.'s cash conversion cycle has shown a significant increase over the years. As of December 31, 2024, the company's cash conversion cycle stands at 37.30 days, indicating that it takes an average of 37.30 days for the company to convert its investments in raw materials and other resources into cash flows from sales.
The cash conversion cycle is a crucial metric for assessing a company's efficiency in managing its working capital. A longer cash conversion cycle can suggest inefficiencies in the company's operations, such as slow inventory turnover or extended credit terms given to customers.
It is important for Concentra Group Holdings Parent, Inc. to closely monitor and manage its cash conversion cycle to ensure optimal working capital management. By identifying bottlenecks in the cycle and implementing strategies to improve efficiency, the company can enhance its liquidity position and overall financial performance.
Peer comparison
Dec 31, 2024