Open Lending's Days Sales Outstanding for the
three
months ended in Dec. 2023 was 30.18.
Open Lending's Days Inventory for the
three
months ended in Dec. 2023 was 0.
Open Lending's Days Payable for the
three
months ended in Dec. 2023 was 5.07.
Therefore, Open Lending's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2023 was 25.11.
Open Lending Cash Conversion Cycle Historical Data
The historical data trend for Open Lending'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.
Competitive Comparison of Open Lending's Cash Conversion Cycle
For the Credit Services subindustry, Open Lending'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.
Open Lending's Cash Conversion Cycle Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Open Lending's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Open Lending's Cash Conversion Cycle falls into.
Open Lending 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.
Open Lending's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
Open Lending (NAS:LPRO) 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.
Open Lending Cash Conversion Cycle Related Terms
Thank you for viewing the detailed overview of Open Lending's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.
Open Lending Corp is engaged in providing automated lending services to financial institutions. The company offers loan analytics, risk-based pricing, risk modeling, and automated decision technology. Its Lenders Protection Program ("LPP") enables automotive lenders to make loans that are largely insured against losses from defaults.
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