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AHR (American Healthcare REIT) Cash Conversion Cycle : 39.65 (As of Sep. 2024)


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What is American Healthcare REIT Cash Conversion Cycle?

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

American Healthcare REIT's Days Sales Outstanding for the three months ended in Sep. 2024 was 35.25.
American Healthcare REIT's Days Inventory for the three months ended in Sep. 2024 was 4.4.
American Healthcare REIT's Days Payable for the three months ended in Sep. 2024 was 0.
Therefore, American Healthcare REIT's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 39.65.


American Healthcare REIT Cash Conversion Cycle Historical Data

The historical data trend for American Healthcare REIT'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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American Healthcare REIT Cash Conversion Cycle Chart

American Healthcare REIT Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
- -24.21 -26.51 -22.66

American Healthcare REIT Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -19.65 -18.05 -13.71 42.32 39.65

Competitive Comparison of American Healthcare REIT's Cash Conversion Cycle

For the REIT - Healthcare Facilities subindustry, American Healthcare REIT'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.


American Healthcare REIT's Cash Conversion Cycle Distribution in the REITs Industry

For the REITs industry and Real Estate sector, American Healthcare REIT's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where American Healthcare REIT's Cash Conversion Cycle falls into.



American Healthcare REIT 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.

American Healthcare REIT'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
=31.7+4.77-59.13
=-22.66

American Healthcare REIT's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=35.25+4.4-0
=39.65

* 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.


American Healthcare REIT  (NYSE:AHR) 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.


American Healthcare REIT Cash Conversion Cycle Related Terms

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American Healthcare REIT Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
18191 Von Karman Avenue, Suite 300, Irvine, CA, USA, 92612
American Healthcare REIT Inc is a healthcare-focused real estate investment trust. It owns a diversified portfolio of clinical healthcare real estate properties, focusing primarily on medical office buildings, skilled nursing facilities, senior housing, hospitals, and other healthcare-related facilities. They have four reportable business segments: integrated senior health campuses, outpatient medical, triple-net leased properties and SHOP. It generates majority of revenue through Integrated Senior Health Campuses segment.