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Zoom Video Communications (NAS:ZM) Cash Conversion Cycle

: 40.15 (As of Jul. 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.

Zoom Video Communications's Days Sales Outstanding for the three months ended in Jul. 2023 was 46.55.
Zoom Video Communications's Days Inventory for the three months ended in Jul. 2023 was 0.
Zoom Video Communications's Days Payable for the three months ended in Jul. 2023 was 6.4.
Therefore, Zoom Video Communications's Cash Conversion Cycle (CCC) for the three months ended in Jul. 2023 was 40.15.

Zoom Video Communications Cash Conversion Cycle Historical Data

The historical data trend for Zoom Video 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.

Zoom Video Communications Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23
Cash Conversion Cycle
Premium Member Only Premium Member Only 25.68 43.57 26.29 28.94 36.90

Zoom Video Communications Quarterly Data
Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23
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 33.63 37.04 40.36 42.04 40.15
Competitive Comparison

For the Software - Application subindustry, Zoom Video 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.

   
Zoom Video Communications Cash Conversion Cycle Distribution

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

* The bar in red indicates where Zoom Video Communications'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.


Zoom Video 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.

Zoom Video Communications's Cash Conversion Cycle for the fiscal year that ended in Jan. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=40.59+0-3.69
=36.90

Zoom Video Communications's Cash Conversion Cycle for the quarter that ended in Jul. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=46.55+0-6.4
=40.15

* 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.

Zoom Video Communications  (NAS:ZM) 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.

Zoom Video Communications Cash Conversion Cycle Related Terms

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

Zoom Video Communications (NAS:ZM) Business Description

Zoom Video Communications logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Zoom Video Communications Inc (NAS:ZM) » Definitions » Cash Conversion Cycle
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NAS:DDOG NAS:TTD NYSE:SNOW NAS:CDNS NAS:ANSS NAS:ADSK NAS:WDAY NAS:TEAM NYSE:UBER NYSE:PAYC NYSE:CRM NAS:INTU XTER:SAP NYSE:NOW XPAR:DSY TSX:SHOP TSX:CSU ISX:GOTO HKSE:00020 NAS:SSNC
Traded in Other Exchanges
ZM:Mexico 5ZM:Germany Z1OM34:Brazil ZOOM:Austria
Address
55 Almaden Boulevard, 6th Floor, San Jose, CA, USA, 95113
Website
https://www.zoom.com
Zoom Video Communications provides a communications platform that connects people through video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video and connects users across various devices and locations in a single meeting. Zoom, which was founded in 2011 and is headquartered in San Jose, California, serves companies of all sizes from all industries around the world.
Executives
Cindy L Hoots director C/O ZOOM VIDEO COMMUNICATIONS, INC, 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Gregory Tomb officer: President 650 CASTRO ST, SUITE 400, MOUNTAIN VIEW CA 94041
William R Mcdermott director 2225 LAWSON LANE, SANTA CLARA CA 95054
Santiago Subotovsky director C/O EMERGENCE CAPITAL PARTNERS, 160 BOVENT ROAD SUITE 300, SAN MATEO CA 94402
Janet Napolitano director C/O VIR BIOTECHNOLOGY, INC., 499 ILLINOIS STREET, SUITE 500, SAN FRANCISCO CA 94158
Shane Crehan officer: Chief Accounting Officer C/O EVENTBRITE, INC., 155 5TH STREET, 7TH FLOOR, SAN FRANCISCO CA 94103
Velchamy Sankarlingam officer: Pres. of Engineering & Product C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Herbert Raymond Mcmaster director C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Michael Saul Abramson 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Douglas M Leone 10 percent owner C/O SEQUOIA CAPITAL, 2800 SAND HILL RD, SUITE 101, MENLO PARK CA 94025
Ryan Azus officer: Chief Revenue Officer C/O ZOOM VIDEO COMMUNICATIONS, INC., 55 ALMADEN BOULEVARD, 6TH FLOOR, SAN JOSE CA 95113
Bonus Goal International Ltd 10 percent owner C/O 7/F, CHEUNG KONG CENTER, 2 QUEEN'S ROAD CENTRAL, HONG KONG K3 00000
Salesforce Com Inc 10 percent owner SALESFORCE TOWER, 415 MISSION STREET 3RD FL, SAN FRANCISCO CA 94105
Sequoia Capital Global Growth Ii Principals Fund, L.p. 10 percent owner 2800 SAND HILL ROAD, SUITE 101, MENLO PARK CA 94025
Qualcomm Inc/de 10 percent owner 5775 MOREHOUSE DR, SAN DIEGO CA 92121