American Homes 4 Rent (American Homes 4 Rent) Cash Conversion Cycle : 0.57 (As of Mar. 2024)

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What is American Homes 4 Rent Cash Conversion Cycle?

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

American Homes 4 Rent's Days Sales Outstanding for the three months ended in Mar. 2024 was 9.43.
American Homes 4 Rent's Days Inventory for the three months ended in Mar. 2024 was 0.
American Homes 4 Rent's Days Payable for the three months ended in Mar. 2024 was 8.86.
Therefore, American Homes 4 Rent's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 0.57.

American Homes 4 Rent Cash Conversion Cycle Historical Data

The historical data trend for American Homes 4 Rent'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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American Homes 4 Rent Cash Conversion Cycle Chart

American Homes 4 Rent Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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7.62

9.23

11.16

9.06

-0.37

American Homes 4 Rent Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash Conversion Cycle	Get a 7-Day Free Trial															8.25	8.50	8.49	-0.27	0.57

Competitive Comparison of American Homes 4 Rent's Cash Conversion Cycle

For the REIT - Residential subindustry, American Homes 4 Rent'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.

American Homes 4 Rent's Cash Conversion Cycle Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Homes 4 Rent's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where American Homes 4 Rent's Cash Conversion Cycle falls into.

American Homes 4 Rent 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.

American Homes 4 Rent'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
	=	10.18	+	0	-	10.55
	=	-0.37

American Homes 4 Rent's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	9.43	+	0	-	8.86
	=	0.57

American Homes 4 Rent (NYSE:AMHpG.PFD) 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.

American Homes 4 Rent Cash Conversion Cycle Related Terms

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American Homes 4 Rent (American Homes 4 Rent) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » American Homes 4 Rent (NYSE:AMHpG.PFD) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

AMHpH.PFD:USA AMH:USA A4XA:Germany

Address

280 Pilot Road, Las Vegas, NV, USA, 89119

Website

https://www.amh.com

American Homes 4 Rent is a real estate investment trust primarily focused on acquiring, operating, and leasing single-family homes as rental properties throughout the United States. The company's real estate portfolio is largely comprised of single-family properties in urban markets in the Southern and Midwestern regions of the U.S. American Homes 4 Rent's land holdings also represent a sizable percentage of its total assets in terms of value. The company derives the vast majority of its income in the form of rental revenue from single-family properties through short-term or annual leases. The firm's largest geographical markets include Dallas, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Charlotte, North Carolina in terms of the number of properties in each.