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DocuSign Cash Conversion Cycle

: 26.58 (As of Jul. 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.

DocuSign's Days Sales Outstanding for the three months ended in Jul. 2020 was 59.86.
DocuSign's Days Inventory for the three months ended in Jul. 2020 was 0.
DocuSign's Days Payable for the three months ended in Jul. 2020 was 33.28.
Therefore, DocuSign's Cash Conversion Cycle (CCC) for the three months ended in Jul. 2020 was 26.58.

DocuSign Cash Conversion Cycle Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

DocuSign Annual Data
Jan16 Jan17 Jan18 Jan19 Jan20
Cash Conversion Cycle 47.70 23.71 13.93 53.73 46.90

DocuSign Quarterly Data
Jan16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.72 15.47 41.22 41.26 26.58
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.

DocuSign Cash Conversion Cycle Distribution

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


DocuSign 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.

DocuSign's Cash Conversion Cycle for the fiscal year that ended in Jan. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=89.13+0-42.23
=46.90

DocuSign's Cash Conversion Cycle for the quarter that ended in Jul. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=59.86+0-33.28
=26.58

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

DocuSign  (NAS:DOCU) 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.

DocuSign Cash Conversion Cycle Related Terms

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