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PFSI (PennyMac Financial Services) Cash Conversion Cycle : -98.64 (As of Mar. 2025)


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What is PennyMac Financial Services Cash Conversion Cycle?

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

PennyMac Financial Services's Days Sales Outstanding for the three months ended in Mar. 2025 was 13.78.
PennyMac Financial Services's Days Inventory for the three months ended in Mar. 2025 was 0.
PennyMac Financial Services's Days Payable for the three months ended in Mar. 2025 was 112.42.
Therefore, PennyMac Financial Services's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was -98.64.


PennyMac Financial Services Cash Conversion Cycle Historical Data

The historical data trend for PennyMac Financial Services'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.

PennyMac Financial Services Cash Conversion Cycle Chart

PennyMac Financial Services Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -146.36 -132.65 -181.25 -163.19 -117.88

PennyMac Financial Services Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Cash Conversion Cycle Get a 7-Day Free Trial 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 Premium Member Only -131.09 -79.45 -71.34 -75.67 -98.64

Competitive Comparison of PennyMac Financial Services's Cash Conversion Cycle

For the Mortgage Finance subindustry, PennyMac Financial Services'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.


PennyMac Financial Services's Cash Conversion Cycle Distribution in the Banks Industry

For the Banks industry and Financial Services sector, PennyMac Financial Services's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where PennyMac Financial Services's Cash Conversion Cycle falls into.


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PennyMac Financial Services 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.

PennyMac Financial Services's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=22.42+0-140.3
=-117.88

PennyMac Financial Services's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=13.78+0-112.42
=-98.64

* 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.


PennyMac Financial Services  (NYSE:PFSI) 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.


PennyMac Financial Services Cash Conversion Cycle Related Terms

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


PennyMac Financial Services Business Description

Traded in Other Exchanges
Address
3043 Townsgate Road, Suite 200, Westlake Village, CA, USA, 91361
PennyMac Financial Services Inc is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. residential mortgage loans. The company operates through two segments: production and servicing. The production segment performs loan origination, acquisition and sale activities. The servicing segment performs loan servicing for newly originated loans.
Executives
Daniel Stanley Perotti officer: Chief Financial Officer C/O PENNYMAC, 6101 CONDOR DRIVE, MOORPARK CA 93021
David Spector director, officer: Chairman & CEO C/O PENNYMAC, 6101 CONDOR DRIVE, UPPER LEVEL, MOORPARK CA 93021
Joseph F Mazzella director C/O HIGHFIELDS CAPITAL MANAGEMENT LP, 200 CLARENDON STREET, BOSTON MA 02116
Doug Jones officer: Chief Mtge Bnkg Ofcr C/O PENNYMAC, 6101 CONDOR DRIVE, UPPER LEVEL, MOORPARK CA 93021
Derek Stark officer: Chief Legal Officer 4500 PARK GRANADA, CALABASAS CA 91302
James Follette officer: Chief Mort Fulfillment Off. PENNYMAC FINANCIAL SERVICES, INC., 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Gregory L Hendry officer: MD, Chief Accounting Officer 3300 LAKE AVENUE, ALTADENA CA 91001
Steven Richard Bailey officer: Chief Servicing Officer C/O PENNYMAC, 6101 CONDOR DRIVE, MOORPARK CA 93021
James K Hunt director THL CREDIT GROUP, 100 FEDERAL STREET, 35TH FLOOR, BOSTON MA 02110
Anne Mccallion director C/O PENNYMAC, 6101 CONDOR DRIVE, UPPER LEVEL, MOORPARK CA 93021
William Herbert Chang officer: Chief Capital Markets Officer PENNYMAC FINANCIAL SERVICES, INC., 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Patrick Kinsella director C/O PENNYMAC, 6101 CONDOR DRIVE, MOORPARK CA 93021
Donald J. White officer: Chief Risk Officer PENNYMAC FINANCIAL SERVICES, INC., 3043 TOWNSGATE ROAD, WESTLAKE VILLAGE CA 91361
Vandad Fartaj officer: Chief Investment Officer C/O PENNYMAC, 6101 CONDOR DRIVE, UPPER LEVEL, MOORPARK CA 93021
Farhad Nanji director C/O HIGHFIELDS CAPITAL MANAGEMENT LP, 200 CLARENDON STREET, BOSTON MA 02116