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Vontier (Vontier) Cash Conversion Cycle : 47.27 (As of Dec. 2023)


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What is Vontier Cash Conversion Cycle?

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

Vontier's Days Sales Outstanding for the three months ended in Dec. 2023 was 59.06.
Vontier's Days Inventory for the three months ended in Dec. 2023 was 66.7.
Vontier's Days Payable for the three months ended in Dec. 2023 was 78.49.
Therefore, Vontier's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 47.27.


Vontier Cash Conversion Cycle Historical Data

The historical data trend for Vontier'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.

Vontier Cash Conversion Cycle Chart

Vontier Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial 48.57 35.80 26.75 33.93 42.68

Vontier Quarterly Data
Dec18 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 42.37 46.34 52.23 53.47 47.27

Competitive Comparison of Vontier's Cash Conversion Cycle

For the Scientific & Technical Instruments subindustry, Vontier'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.


Vontier's Cash Conversion Cycle Distribution in the Hardware Industry

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

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



Vontier 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.

Vontier's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=59.69+70.48-87.49
=42.68

Vontier's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=59.06+66.7-78.49
=47.27

* 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.


Vontier  (NYSE:VNT) 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.


Vontier Cash Conversion Cycle Related Terms

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


Vontier (Vontier) Business Description

Traded in Other Exchanges
Address
5438 Wade Park Boulevard, Suite 600, Raleigh, NC, USA, 27607
Vontier, spun off from Fortive in 2020, is an industrial technology company with a portfolio of transportation and mobility solutions. The company offers a wide array of products and services, including fueling equipment, sensors, point-of-sale and payment systems, telematics, and equipment used by vehicle mechanics and technicians. Vontier generated approximately $3.2 billion in sales and $578 million in operating profit in 2022.
Executives
David M Foulkes director C/O BRUNSWICK CORPORATION, 26125 N RIVERWOOD BLVD. SUITE 500, METTAWA IL 60045-3420
Anshooman Aga officer: SVP, Chief Financial Officer PO BOX 85587, SAN DIEGO CA 92186-5587
Christopher J Klein director 520 LAKE COOK ROAD, DEERFIELD IL 60015
Gloria R. Boyland director 6100 N. WESTERN AVENUE, OKLAHOMA CITY OK 73118
Mark D Morelli officer: See Remarks 205 CROSSPOINT PARKWAY, GETZVILLE NY 14068
Kathryn K. Rowen officer: See Remarks C/O VONTIER CORPORATION, 5420 WADE PARK BLVD., SUITE 206, RALEIGH NC 27607
Andrew Miller director 111 MCINNIS PARKWAY, SAN RAFAEL CA 94903
Aaron W Saak officer: Pres & CEO, Mobility Solutions C/O VONTIER CORPORATION, 5438 WADE PARK BLVD., SUITE 600, RALEIGH NC 27607
David H. Naemura officer: See Remarks C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Paul V. Shimp officer: VP, Chief Accounting Officer C/O VONTIER CORPORATION, 5438 WADE PARK BLVD., SUITE 600, RALEIGH NC 27607
Lynn Ross officer: See Remarks 100 CRESCENT CENTRE PARKWAY, SUITE 800, TUCKER GA 30084
Maryrose Sylvester director C/O 3700 WEST JUNEAU AVENUE, MILWAUKEE WI 53208
Robert L Eatroff director C/O VONTIER CORPORATION, 5438 WADE PARK BLVD STE 600, RALEIGH NC 27607
Karen C Francis director 200 SW 1ST AVE, SUITE 1600, FORT LAUDERDALE FL 33301
Andrew R. Nash officer: See Remarks C/O VONTIER CORPORATION, 5420 WADE PARK BLVD, SUITE 206, RALEIGH NC 27607