Verra Mobility Corp (VRRM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 297.99 | 150.88 | 149.11 | 125.59 | 261.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 297.99 | 150.88 | 149.11 | 125.59 | 261.83 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 297.99 + — – —
= 297.99
Based on the data provided for Verra Mobility Corp's cash conversion cycle, we observe fluctuations in this metric over the years. The cash conversion cycle, which represents the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales, decreased significantly from 261.83 days as of December 31, 2020, to 125.59 days as of December 31, 2021. This reduction indicates an improvement in the company's efficiency in converting its resources into cash.
However, in the subsequent years, the cash conversion cycle increased to 149.11 days as of December 31, 2022, 150.88 days as of December 31, 2023, and notably spiked to 297.99 days as of December 31, 2024. These increasing values suggest that Verra Mobility Corp may be facing challenges related to managing its working capital efficiently, resulting in a longer cash conversion cycle.
Overall, the fluctuating trend in Verra Mobility Corp's cash conversion cycle indicates varying levels of efficiency in managing its cash flows and working capital throughout the years under review. It would be essential for the company to assess and address the factors contributing to the prolonged cash conversion cycle to ensure optimal financial performance and liquidity in the future.
Peer comparison
Dec 31, 2024