Sprint (Sprint) Cash Conversion Cycle : -19.62 (As of Dec. 2019)

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What is Sprint Cash Conversion Cycle?

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

Sprint's Days Sales Outstanding for the three months ended in Dec. 2019 was 47.36.
Sprint's Days Inventory for the three months ended in Dec. 2019 was 26.62.
Sprint's Days Payable for the three months ended in Dec. 2019 was 93.6.
Therefore, Sprint's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2019 was -19.62.

Sprint Cash Conversion Cycle Historical Data

The historical data trend for Sprint'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.

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Sprint Cash Conversion Cycle Chart

Sprint Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Mar15

Mar16

Mar17

Mar18

Mar19

Cash Conversion Cycle

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-12.12

-33.85

-17.62

-20.60

-29.46

Sprint Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
Cash Conversion Cycle	Get a 7-Day Free Trial															-37.03	-32.86	-36.37	-32.76	-19.62

Competitive Comparison of Sprint's Cash Conversion Cycle

For the Telecom Services subindustry, Sprint'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.

Sprint's Cash Conversion Cycle Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Sprint's Cash Conversion Cycle distribution charts can be found below:

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

Sprint 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.

Sprint's Cash Conversion Cycle for the fiscal year that ended in Mar. 2019 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	32.26	+	27.29	-	89.01
	=	-29.46

Sprint's Cash Conversion Cycle for the quarter that ended in Dec. 2019 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	47.36	+	26.62	-	93.6
	=	-19.62

Sprint (NYSE:S) 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.

Sprint Cash Conversion Cycle Related Terms

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Sprint (Sprint) Business Description

Industry

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Address

6200 Sprint Parkway, Overland Park, KS, USA, 66251

Website

https://www.sprint.com

A decade of operational problems has considerably diminished Sprint's position in the wireless industry. It is now the fourth- largest carrier in the United States, serving 26 million postpaid and 9 million prepaid phone customers directly and 13 million via wholesale channels. Over the past five years, the firm's share of the postpaid phone market has declined about 1 percentage point to 12%, leaving it about three fourths the size of T-Mobile U.S., the next smallest carrier. About 4% of sales come from the wireline unit, which provides phone and data services to the wireless unit and external customers. Japanese firm Softbank took a 78% stake in Sprint through the purchase of existing Sprint shares and a $5 billion equity infusion in 2013; it has since increased its stake to 85%.