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WEX (WEX) Cash Conversion Cycle : 94.65 (As of Mar. 2025)


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What is WEX Cash Conversion Cycle?

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

WEX's Days Sales Outstanding for the three months ended in Mar. 2025 was 485.71.
WEX's Days Inventory for the three months ended in Mar. 2025 was 0.
WEX's Days Payable for the three months ended in Mar. 2025 was 391.06.
Therefore, WEX's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was 94.65.


WEX Cash Conversion Cycle Historical Data

The historical data trend for WEX'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.

WEX Cash Conversion Cycle Chart

WEX 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 137.89 84.79 65.93 2.31 46.66

WEX 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 -28.18 -85.62 -36.85 75.18 94.65

Competitive Comparison of WEX's Cash Conversion Cycle

For the Software - Infrastructure subindustry, WEX'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.


WEX's Cash Conversion Cycle Distribution in the Software Industry

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

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


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WEX 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.

WEX'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
=446.99+0-400.33
=46.66

WEX'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
=485.71+0-391.06
=94.65

* 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.


WEX  (NYSE:WEX) 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.


WEX Cash Conversion Cycle Related Terms

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


WEX Business Description

Industry
Traded in Other Exchanges
Address
1 Hancock Street, Portland, ME, USA, 04101
WEX Inc is a provider of corporate payment solutions. The company operates three business segments: Mobility, Benefits, and Corporate Payments. Mobility segment, the top segment by revenue, provides fleet vehicle payment solutions, transaction processing, and information management services for commercial and government fleets. The Corporate Payments segment offers business-to-business payment processing and transaction monitoring services. The Benefits segment generates revenue from healthcare payment products and its consumer-directed software platform. Wex's largest end market is the United States of America.
Executives
Melanie J Tinto officer: Chief Human Resources Officer C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Robert Joseph Deshaies officer: President, WEX Health C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Jagtar Narula officer: Chief Financial Officer 333 THREE D SYSTEMS CIRCLE, ROCK HILL SC 29730
Ann Elena Drew officer: Chief Risk and Compliance C/0 WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Jennifer Kimball officer: Interim CFO C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Carlos Carriedo officer: COO, International C/0 WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Hilary A Rapkin officer: SVP, Gen. Counsel & Corp. Sec. C/O WRIGHT EXPRESS CORPORATION, 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Melissa D Goodwin officer: SVP, Finance and CFO C/O WRIGHT EXPRESS CORPORATION, 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Jack Vanwoerkom director
Stephen Montgomery Smith director C/O WEX INC., 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
James R Groch director 50 SOUTH 16TH STREET, SUITE 3000, PHILADELPHIA PA 19102
Regina O Sommer director 201 JONES RD, WALTHAM MA 02451
David G Cooper officer: Chief Technology Officer C/O WEX INC., 9, SOUTH PORTLAND ME 04106
Derrick A. Roman director C/O COMMSCOPE HOLDING COMPANY, INC., 1100 COMMSCOPE PLACE, SE, HICKORY NC 28602
Karen B. Stroup officer: Chief Digital Officer 440 S. CHURCH STREET, SUITE 700, CHARLOTTE NC 28202