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XBP Europe Holdings (XBP Europe Holdings) Cash Conversion Cycle : 16.44 (As of Mar. 2024)


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What is XBP Europe Holdings Cash Conversion Cycle?

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

XBP Europe Holdings's Days Sales Outstanding for the three months ended in Mar. 2024 was 47.24.
XBP Europe Holdings's Days Inventory for the three months ended in Mar. 2024 was 14.22.
XBP Europe Holdings's Days Payable for the three months ended in Mar. 2024 was 45.02.
Therefore, XBP Europe Holdings's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 16.44.


XBP Europe Holdings Cash Conversion Cycle Historical Data

The historical data trend for XBP Europe Holdings'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.

XBP Europe Holdings Cash Conversion Cycle Chart

XBP Europe Holdings Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
- 46.21 38.34 26.36 21.26

XBP Europe Holdings Quarterly Data
Dec19 Dec20 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 26.52 29.05 29.46 21.02 16.44

Competitive Comparison of XBP Europe Holdings's Cash Conversion Cycle

For the Software - Infrastructure subindustry, XBP Europe Holdings'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.


XBP Europe Holdings's Cash Conversion Cycle Distribution in the Software Industry

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

* The bar in red indicates where XBP Europe Holdings's Cash Conversion Cycle falls into.



XBP Europe Holdings 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.

XBP Europe Holdings'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
=52.76+13.26-44.76
=21.26

XBP Europe Holdings'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
=47.24+14.22-45.02
=16.44

* 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.


XBP Europe Holdings  (NAS:XBP) 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.


XBP Europe Holdings Cash Conversion Cycle Related Terms

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XBP Europe Holdings (XBP Europe Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
2701 East Grauwyler Road, Irving, TX, USA, 75061
XBP Europe Holdings Inc is a pan-European integrator of bills, payments and related solutions and services seeking to enable the digital transformation of its more than 2,000 clients. The company's name - XBP stands for exchange for bills and payments and reflects the company's strategy to connect buyers and suppliers, across industries, including banking, healthcare, insurance, utilities and the public sector, to optimize clients' bills and payments and related digitization processes. The company provides business process management solutions with proprietary software suites and deep domain expertise, serving as a technology and services partner for its clients. Its cloud-based structure enables it to deploy its solutions across the European market, the Middle East, and Africa.