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Genpact (Genpact) Cash Conversion Cycle : 83.04 (As of Dec. 2023)


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What is Genpact Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Genpact's Days Sales Outstanding for the three months ended in Dec. 2023 was 86.4.
Genpact's Days Inventory for the three months ended in Dec. 2023 was 0.
Genpact's Days Payable for the three months ended in Dec. 2023 was 3.36.
Therefore, Genpact's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 83.04.


Genpact Cash Conversion Cycle Historical Data

The historical data trend for Genpact's Cash Conversion Cycle can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Genpact Cash Conversion Cycle Chart

Genpact Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 82.40 85.62 77.51 74.69 82.07

Genpact Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 78.26 80.06 78.96 78.57 83.04

Competitive Comparison of Genpact's Cash Conversion Cycle

For the Information Technology Services subindustry, Genpact's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Genpact's Cash Conversion Cycle Distribution in the Software Industry

For the Software industry and Technology sector, Genpact's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Genpact's Cash Conversion Cycle falls into.



Genpact Cash Conversion Cycle Calculation

Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.

Cash Conversion Cycle is one of several measures of management effectiveness.

Genpact's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=86.06+0-3.99
=82.07

Genpact's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=86.4+0-3.36
=83.04

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Genpact  (NYSE:G) Cash Conversion Cycle Explanation

Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.


Be Aware

CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.

The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.


Genpact Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Genpact's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Genpact (Genpact) Business Description

Industry
Traded in Other Exchanges
Address
22 Victoria Street, Canon's Court, Hamilton, BMU, HM 12
Genpact Ltd is a provider of business process management services. Clients are industry verticals and operate in banking and financial services, insurance, capital markets, consumer product goods, life sciences, infrastructure, manufacturing and services, healthcare, and high-tech. Genpact's services include aftermarket, direct procurement, risk and compliance, human resources, IT, industrial solutions, collections, finance and accounting, and media services. Genpact's end market by revenue is India. The company is a General Electric spin-off, which is still a large source of revenue for Genpact.
Executives
Kathryn Vanpelt Stein officer: Senior Vice President 40 WEST 24TH STREET, APT 3N, NEW YORK NY 10010
N. V. Tyagarajan officer: Executive Vice President 825 EIGHTH AVENUE, NEW YORK NY 10019
Michael Hal Weiner officer: Chief Financial Officer C/O NGHC, 59 MAIDEN LANE, 38TH FLOOR, NEW YORK NY 10038
Donald J Klunk officer: Chief Accounting Officer 3585 GRAY FOX DR, CHALFONT PA 18914
Piyush Mehta officer: Senior VP , Human Resources 825 EIGHTH AVENUE, NEW YORK NY 10019
James C. Madden director 825 EIGHTH AVENUE, NEW YORK NY 10019
Cecelia Morken director 26025 MUREAU ROAD, CALABASAS CA 91302
Heather White officer: SVP & General Counsel 1155 AVENUE OF THE AMERICAS, 4TH FLOOR, NEW YORK X1 10036
Stacey Cartwright director 34 ROEDEAN CRESCENT, LONDON X0 SW15 5JU
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Ajay Agrawal director 105 ROBERT STREET, TORONTO A6 M5S 2K5
Tamara Franklin director 107 STONE CLIFF ROAD, PRINCETON NJ 08540
Balkrishan Kalra officer: Senior Vice President 5 MARION AVENUE, SHORT HILLS NJ 07078
Carol Lindstrom director 5994 SILVERADO TRAIL, NAPA CA 94558
Darren Saumur officer: Senior Vice President 125 DUPONT STREET, TORONTO A6 M5R 1V4