Verra Mobility Corp (VRRM)

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	23.32	28.86	27.91	26.28	26.12	24.74	24.05	24.38	20.67	109.32	119.30	86.23	0.42	47.69	38.00	49.27	1.81	29.86	27.55	2.39
Days of sales outstanding (DSO)	days	827.79	823.95	791.72	805.03	745.97	894.23	979.25	1,276.45	1,735.51	554.66	425.47	281.19	15.81	153.25	125.63	108.65	103.04	118.45	116.43	107.01
Number of days of payables	days	102.21	129.88	110.58	99.25	108.06	95.45	100.44	99.49	115.46	152.00	167.31	150.41	127.80	91.77	71.85	75.23	100.56	59.75	58.61	73.12
Cash conversion cycle	days	748.90	722.93	709.05	732.06	664.03	823.53	902.86	1,201.34	1,640.72	511.98	377.45	217.01	-111.58	109.16	91.79	82.70	4.30	88.55	85.38	36.27

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.32 + 827.79 – 102.21
= 748.90

Verra Mobility Corp's cash conversion cycle has exhibited fluctuations over the past eight quarters. The company experienced a negative cash conversion cycle in each quarter, indicating an efficient management of working capital.

In Q3 2023, the cash conversion cycle was the longest at -501.19 days, which suggests that the company took longer to convert its investments in inventory and accounts receivable into cash during that period. However, this was followed by a significant improvement in Q4 2023, where the cycle decreased to -405.55 days.

Overall, the company's cash conversion cycle has been volatile, with periods of longer and shorter cycles. This variability may indicate changes in the company's operational efficiency and effectiveness in managing its working capital. Monitoring this metric going forward will be important for assessing Verra Mobility Corp's liquidity and ability to convert its assets into cash.