The Ultimate Software Group (The Ultimate Software Group) Cash Conversion Cycle : 54.66 (As of Mar. 2019)

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What is The Ultimate Software Group Cash Conversion Cycle?

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

The Ultimate Software Group's Days Sales Outstanding for the three months ended in Mar. 2019 was 66.25.
The Ultimate Software Group's Days Inventory for the three months ended in Mar. 2019 was 0.
The Ultimate Software Group's Days Payable for the three months ended in Mar. 2019 was 11.59.
Therefore, The Ultimate Software Group's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2019 was 54.66.

The Ultimate Software Group Cash Conversion Cycle Historical Data

The historical data trend for The Ultimate Software Group'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.

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The Ultimate Software Group Cash Conversion Cycle Chart

The Ultimate Software Group Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Cash Conversion Cycle

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54.66

56.68

55.57

53.25

55.18

The Ultimate Software Group Quarterly Data
	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19
Cash Conversion Cycle	Get a 7-Day Free Trial															49.24	51.84	53.68	55.90	54.66

Competitive Comparison of The Ultimate Software Group's Cash Conversion Cycle

For the Software - Infrastructure subindustry, The Ultimate Software Group'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.

The Ultimate Software Group's Cash Conversion Cycle Distribution in the Software Industry

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

* The bar in red indicates where The Ultimate Software Group's Cash Conversion Cycle falls into.

The Ultimate Software Group 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.

The Ultimate Software Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2018 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	68.77	+	0	-	13.59
	=	55.18

The Ultimate Software Group's Cash Conversion Cycle for the quarter that ended in Mar. 2019 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	66.25	+	0	-	11.59
	=	54.66

The Ultimate Software Group (NAS:ULTI) 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.

The Ultimate Software Group Cash Conversion Cycle Related Terms

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The Ultimate Software Group (The Ultimate Software Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » The Ultimate Software Group Inc (NAS:ULTI) » Definitions » Cash Conversion Cycle

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Address

2000 Ultimate Way, Weston, FL, USA, 33326

Website

http://www.ultimatesoftware.com

The Ultimate Software Group is a provider of human capital management software solutions. The firm's UltiPro product suite includes human resources, payroll, and benefits management functionality, available in 12 languages and 35 country-specific localizations. Its solutions manage the complete employee lifecycle from recruitment to retirement, and include talent acquisition and onboarding, performance management, salary planning, budgeting, succession management, reporting, and analytical capabilities. The firm generates revenue through cloud subscription fees and implementation consulting services fees. All of the firm's revenue is generated in the United States and Canada.

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