Ellie Mae (Ellie Mae) Cash Conversion Cycle : 4.08 (As of Dec. 2018)

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What is Ellie Mae Cash Conversion Cycle?

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

Ellie Mae's Days Sales Outstanding for the three months ended in Dec. 2018 was 36.13.
Ellie Mae's Days Inventory for the three months ended in Dec. 2018 was 0.
Ellie Mae's Days Payable for the three months ended in Dec. 2018 was 32.05.
Therefore, Ellie Mae's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2018 was 4.08.

Ellie Mae Cash Conversion Cycle Historical Data

The historical data trend for Ellie Mae'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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Ellie Mae Cash Conversion Cycle Chart

Ellie Mae Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Cash Conversion Cycle

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-4.80

-0.87

-4.86

-10.25

-6.60

Ellie Mae Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
Cash Conversion Cycle	Get a 7-Day Free Trial															-0.06	-8.23	-0.09	5.68	4.08

Competitive Comparison of Ellie Mae's Cash Conversion Cycle

For the Software - Application subindustry, Ellie Mae'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.

Ellie Mae's Cash Conversion Cycle Distribution in the Software Industry

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

* The bar in red indicates where Ellie Mae's Cash Conversion Cycle falls into.

Ellie Mae 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.

Ellie Mae'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
	=	33.06	+	0	-	39.66
	=	-6.60

Ellie Mae's Cash Conversion Cycle for the quarter that ended in Dec. 2018 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	36.13	+	0	-	32.05
	=	4.08

Ellie Mae (NYSE:ELLI) 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.

Ellie Mae Cash Conversion Cycle Related Terms

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

Ellie Mae (Ellie Mae) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Ellie Mae Inc (NYSE:ELLI) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

4420 Rosewood Drive, Suite 500, Pleasanton, CA, USA, 94588

Website

https://www.elliemae.com

Ellie Mae Inc is a provider of on-demand software solutions and services for the residential mortgage industry. Its solutions provide a system to allow banks, credit unions, and mortgage lenders to originate and fund mortgages. The company's solutions include customer relationship management, loan processing, underwriting, compliance, and overall enterprise management capabilities. The company derives revenue from transaction-based fees and subscription fees to its Software-as-a-Service solutions, which are typically sold on an annual basis. All of the firm's revenue is generated in the United States.

Executives

Rajat Taneja	director	C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, LEGAL DEPT., REDWOOD CITY CA 94065
Marina Levinson	director	C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Robert J Levin	director	ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
A Barr Dolan	director	ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Karen Blasing	director	4420 ROSEWOOD DRIVE, SUITE 500, PLEASANTON CA 94588
Peter Hirsch	officer: EVP, Technology & Operations	C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, PLEASANTON CA 94588
Alan S. Henricks	director	MODEL N, INC., 777 MARINERS ISLAND BLVD., SUITE 300, SAN MATEO CA 94404
First American Corp	10 percent owner	40 PACIFICA, SUITE 900, IRVINE CA 92618
Alta Embarcadero Partners Ii Llc	10 percent owner	ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Alta California Management Partners Ii Llc	10 percent owner	ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Garrett Gruener	10 percent owner	ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Alta California Partners Ii Lp	10 percent owner	ONE EMBARCADERO CENTER, SUITE 3700, SAN FRANCISCO CA 94111
Cmc Master Fund, L.p.	10 percent owner	525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301
C.m. Capital Corp	10 percent owner	525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301
C.m. Capital Advisors, Llc	10 percent owner	525 UNIVERSITY AVENUE, SUITE 1400, PALO ALTO CA 94301