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Invitation Homes (FRA:4IV) Cash Conversion Cycle : 9.25 (As of Mar. 2024)


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What is Invitation Homes Cash Conversion Cycle?

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

Invitation Homes's Days Sales Outstanding for the three months ended in Mar. 2024 was 9.25.
Invitation Homes's Days Inventory for the three months ended in Mar. 2024 was 0.
Invitation Homes's Days Payable for the three months ended in Mar. 2024 was 0.
Therefore, Invitation Homes's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 9.25.


Invitation Homes Cash Conversion Cycle Historical Data

The historical data trend for Invitation Homes'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.

Invitation Homes Cash Conversion Cycle Chart

Invitation Homes 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 5.96 6.30 6.42 7.28 8.74

Invitation Homes 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 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 8.92 9.12 8.61 8.84 9.25

Competitive Comparison of Invitation Homes's Cash Conversion Cycle

For the REIT - Residential subindustry, Invitation Homes'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.


Invitation Homes's Cash Conversion Cycle Distribution in the REITs Industry

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

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



Invitation Homes 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.

Invitation Homes'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
=8.74+0-0
=8.74

Invitation Homes'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
=9.25+0-0
=9.25

* 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.


Invitation Homes  (FRA:4IV) 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.


Invitation Homes Cash Conversion Cycle Related Terms

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Invitation Homes (FRA:4IV) Business Description

Traded in Other Exchanges
Address
1717 Main Street, Suite 2000, Dallas, TX, USA, 75201
Invitation Homes owns a portfolio of nearly 83,000 single-family rental homes. The company focuses on owning homes in the starter and move-up segments of the housing market with an average sale price around $300,000 and generally less than 1,800 square feet. The portfolio is spread across 16 target markets that feature high employment and household formation growth with over 70% of the portfolio in the Western U.S. and Florida; 15 of the 16 markets featuring average rents lower than homeownership costs.

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