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Zuora (ZUO) Cash Conversion Cycle : 79.16 (As of Jan. 2024)


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What is Zuora Cash Conversion Cycle?

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

Zuora's Days Sales Outstanding for the three months ended in Jan. 2024 was 83.65.
Zuora's Days Inventory for the three months ended in Jan. 2024 was 0.
Zuora's Days Payable for the three months ended in Jan. 2024 was 4.49.
Therefore, Zuora's Cash Conversion Cycle (CCC) for the three months ended in Jan. 2024 was 79.16.


Zuora Cash Conversion Cycle Historical Data

The historical data trend for Zuora'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.

Zuora Cash Conversion Cycle Chart

Zuora Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only 79.14 82.21 73.03 70.81 86.21

Zuora Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 60.19 68.52 60.71 64.33 79.16

Competitive Comparison of Zuora's Cash Conversion Cycle

For the Software - Infrastructure subindustry, Zuora'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.


Zuora's Cash Conversion Cycle Distribution in the Software Industry

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

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



Zuora 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.

Zuora's Cash Conversion Cycle for the fiscal year that ended in Jan. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=91.47+0-5.26
=86.21

Zuora's Cash Conversion Cycle for the quarter that ended in Jan. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=83.65+0-4.49
=79.16

* 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.


Zuora  (NYSE:ZUO) 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.


Zuora Cash Conversion Cycle Related Terms

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


Zuora (ZUO) Business Description

Industry
Traded in Other Exchanges
Address
101 Redwood Shores Parkway, Redwood City, CA, USA, 94065
Zuora Inc provides cloud-based software on a subscription basis that enables companies in various industries to launch, manage, and transform into a subscription business. The firm offers Zuora Central platform that acts as an intelligent subscription management hub that automates the subscription order-to-cash process, including quoting, billing, collections, analytics, and revenue recognition. Its products include Zuora Billing, Zuora CPQ, and Zuora Collect. Zuora caters to various industries comprising software, hardware, media, transportation, construction, healthcare, education, retail, Internet of Things, and others worldwide. Geographically, it derives a majority of its revenue from the United States.
Executives
Amy Guggenheim Shenkan director C/O RITCHIE BROS. AUCTIONEERS INC., 9500 GLENLYON PARKWAY, BURNABY A1 V5J 0C6
Robert J. Traube officer: Chief Revenue Officer C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Todd Mcelhatton officer: Chief Financial Officer 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Andrew M. Cohen officer: CLO and Corp. Secretary C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Matthew R Dobson officer: Chief Accounting Officer C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Tien Tzuo director, 10 percent owner, officer: See Remarks C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Peter Hirsch officer: Chief Product & Tech Officer C/O ELLIE MAE, INC., 4420 ROSEWOOD DRIVE, PLEASANTON CA 94588
Kenneth A Goldman director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Sri Srinivasan officer: Chief Product & Tech Officer C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Laura A. Clayton director C/O ZUORA, INC., 101 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Sla Zurich Gp, L.l.c. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slaa Ii (gp), L.l.c. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Zurich Aggregator, L.p. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sla Zurich Holdings, L.p. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Sl Alpine Ii Aggregator Gp, L.l.c. director, 10 percent owner C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025