VNET Group (VNET Group) Cash Conversion Cycle : 53.88 (As of Dec. 2023)

View and export this data going back to 2011. Start your Free Trial

What is VNET Group Cash Conversion Cycle?

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

VNET Group's Days Sales Outstanding for the three months ended in Dec. 2023 was 94.89.
VNET Group's Days Inventory for the three months ended in Dec. 2023 was 0.
VNET Group's Days Payable for the three months ended in Dec. 2023 was 41.01.
Therefore, VNET Group's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 53.88.

VNET Group Cash Conversion Cycle Historical Data

The historical data trend for VNET 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.

* Premium members only.

VNET Group Cash Conversion Cycle Chart

VNET Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

Get a 7-Day Free Trial

19.07

32.19

40.83

51.46

52.15

VNET Group 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															46.72	53.99	57.49	56.35	53.88

Competitive Comparison of VNET Group's Cash Conversion Cycle

For the Information Technology Services subindustry, VNET 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.

VNET Group's Cash Conversion Cycle Distribution in the Software Industry

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

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

VNET 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.

VNET Group'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
	=	94.7	+	0	-	42.55
	=	52.15

VNET Group'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
	=	94.89	+	0	-	41.01
	=	53.88

VNET Group (NAS:VNET) 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.

VNET Group Cash Conversion Cycle Related Terms

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

VNET Group (VNET Group) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

217A:Germany

Address

No. 10 Jiuxianqiao East Road, Guanjie Building Southeast 1st Floor, Chaoyang District, Beijing, CHN, 100016

Website

https://www.vnet.com

VNET started as AsiaCloud in 1999 and moved to the data center business with its first self-developed data center opening in 2010. The firm listed (as 21Vianet) on the Nasdaq in April 2011, subsequently changing its name to VNET Group in 2021. It originally focused on providing data center services such as colocation and cloud services to retail clients in China, but added hyperscale customers in 2019 and now counts large Chinese hyperscalers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud as customers. At end-September 2023 it had 84,608 self-built cabinets with the majority in Beijing, Shanghai, and the Greater Bay area. It also operated partnered data centers with around 4,314 cabinets and had 476 MW of wholesale capacity contracted or under a memorandum of understanding.