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Montrose Environmental Group Cash Conversion Cycle

: 26.62 (As of Dec. 2020)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Montrose Environmental Group's Days Sales Outstanding for the three months ended in Dec. 2020 was 41.49.
Montrose Environmental Group's Days Inventory for the three months ended in Dec. 2020 was 3.06.
Montrose Environmental Group's Days Payable for the three months ended in Dec. 2020 was 17.93.
Therefore, Montrose Environmental Group's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2020 was 26.62.


Montrose Environmental Group Cash Conversion Cycle Historical Data

* 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.

Montrose Environmental Group Annual Data
Dec18 Dec19 Dec20
Cash Conversion Cycle 52.69 42.85 33.90

Montrose Environmental Group Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only 37.53 42.14 32.86 29.04 26.62

Competitive Comparison
* 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.


Montrose Environmental Group Cash Conversion Cycle Distribution

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



Montrose Environmental 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.

Montrose Environmental Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=55.62+4.12-25.84
=33.90

Montrose Environmental Group's Cash Conversion Cycle for the quarter that ended in Dec. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=41.49+3.06-17.93
=26.62

* 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.


Montrose Environmental Group  (NYSE:MEG) 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.


Montrose Environmental Group Cash Conversion Cycle Related Terms


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