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Verizon Communications (Verizon Communications) Cash Conversion Cycle

: 15.91 (As of Dec. 2023)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Verizon Communications's Days Sales Outstanding for the three months ended in Dec. 2023 was 63.23.
Verizon Communications's Days Inventory for the three months ended in Dec. 2023 was 12.91.
Verizon Communications's Days Payable for the three months ended in Dec. 2023 was 60.23.
Therefore, Verizon Communications's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 15.91.


Verizon Communications Cash Conversion Cycle Historical Data

The historical data trend for Verizon Communications'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.

Verizon Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.25 30.37 33.29 29.47 19.92

Verizon Communications Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cash Conversion Cycle 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 Premium Member Only Premium Member Only Premium Member Only 27.67 22.64 79.74 78.08 15.91

Competitive Comparison

For the Telecom Services subindustry, Verizon Communications'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.


Verizon Communications Cash Conversion Cycle Distribution

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

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



Verizon Communications 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.

Verizon Communications'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
=67.55+14.78-62.41
=19.92

Verizon Communications'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
=63.23+12.91-60.23
=15.91

* 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.


Verizon Communications  (NYSE:VZ) 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.


Verizon Communications Cash Conversion Cycle Related Terms

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Verizon Communications (Verizon Communications) Business Description

Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.
Executives
Craig L. Silliman officer: EVP of PubPolicy & Gen Counsel 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Samantha Hammock officer: EVP & Chief HR Officer 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Joseph J. Russo officer: EVP&Pres-Global Networks&Tech VERIZON COMMUNICATIONS INC., 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Mary-lee Stillwell officer: SVP and Controller 804 CARNEGIE CENTER, PRINCETON NJ 08540
Kyle Malady officer: EVP & Chief Technology Officer 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Vittorio Colao director 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Vandana Venkatesh officer: EVP and General Counsel VERIZON COMMUNICATIONS INC., 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Sowmyanarayan Sampath officer: EVP and Group CEO-VZ Business 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Tami A. Erwin officer: EVP and Group CEO-VZ Business 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Hans Erik Vestberg director, officer: Chairman and CEO 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Manon Brouillette officer: EVP and Group CEO-VZ Consumer 40 AVENUE SPRINGGROVE, MONTREAL Z4 H3C 4M8
Carol B Tome director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kumara Guru Gowrappan officer: EVP and Group CEO-VZ Media 1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Laxman Narasimhan director PEPSICO, INC., 700 ANDERSON HILL ROAD, PURCHASE NY 10577
Shellye L Archambeau director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR, NEW YORK NY 10036