Peloton Interactive (NAS:PTON) Cash Conversion Cycle

: 149.21 (As of Mar. 2023)

View and export this data going back to 2019. Start your Free Trial

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

Peloton Interactive's Days Sales Outstanding for the three months ended in Mar. 2023 was 14.22.
Peloton Interactive's Days Inventory for the three months ended in Mar. 2023 was 134.99.
Peloton Interactive's Days Payable for the three months ended in Mar. 2023 was 0.
Therefore, Peloton Interactive's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2023 was 149.21.

Peloton Interactive Cash Conversion Cycle Historical Data

The historical data trend for Peloton Interactive'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.

Peloton Interactive Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Cash Conversion Cycle

3.72

19.85

33.58

53.24

108.15

Peloton Interactive Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Cash Conversion Cycle																180.63	160.59	230.69	157.87	149.21

Competitive Comparison

For the Leisure subindustry, Peloton Interactive'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.

Annual Data Quarterly Data

Peloton Interactive Cash Conversion Cycle Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Peloton Interactive's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Peloton Interactive's Cash Conversion Cycle falls in comparison to its industry or sector. The grey bar indicates the Cash Conversion Cycle's extreme value range as defined by GuruFocus.

Peloton Interactive 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.

Peloton Interactive's Cash Conversion Cycle for the fiscal year that ended in Jun. 2022 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	7.9	+	129.2	-	28.95
	=	108.15

Peloton Interactive's Cash Conversion Cycle for the quarter that ended in Mar. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	14.22	+	134.99	-	0
	=	149.21

Peloton Interactive (NAS:PTON) 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.

Peloton Interactive Cash Conversion Cycle Related Terms

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

Peloton Interactive (NAS:PTON) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Peloton Interactive Inc (NAS:PTON) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

PTON:Mexico 0A46:UK 2ON:Germany PTON:Austria

Address

441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001

Website

https://www.onepeloton.com

Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of sales of bike and tread and related accessories, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue consists of revenue generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates the majority of the revenue from the sale of Connected Fitness Products.

Executives

Saqib Baig	officer: Chief Accounting Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Jennifer Cunningham Cotter	officer: Chief Content Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Elizabeth F Coddington	officer: Chief Financial Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Andrew S Rendich	officer: Chief Supply Chain Officer	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Barry Mccarthy	director, officer: CEO and President	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jonathan Mildenhall	director	C/O GRAUBARD MILLER, 405 LEXINGTON AVENUE, NEW YORK NY 10174
Angel L Mendez	director	C/O SLEEP NUMBER CORPORATION, 1001 THIRD AVENUE SOUTH, MINNEAPOLIS MN 55404
Jay C Hoag	director	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Kevin Cornils	officer: Chief Commercial Officer	C/O PELOTON INTERACTIVE, INC., 441 NINTH AVENUE, SIXTH FLOOR, NEW YORK NY 10001
Tcv Ix (a), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X (a), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv X Cycle (mf), L.p.	other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix, L.p.	10 percent owner, other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Tcv Ix Cycle, L.p.	10 percent owner, other: May be part of 13(d) group	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Technology Crossover Management X, Ltd.	other: May be part of 13(d) group	C/O TECHNOLOGY CROSSOVER VENTURES, 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025