CZOOF (Cazoo Group) Cash Conversion Cycle: 83.58 (As of Jun. 2023)


What is Cazoo Group Cash Conversion Cycle?

Cazoo Group CZOOF -99.00% Cash Conversion Cycle is 83.58 as of Jun. 2023.

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

Cazoo Group's Days Sales Outstanding for the six months ended in Jun. 2023 was 18.61.
Cazoo Group's Days Inventory for the six months ended in Jun. 2023 was 81.73.
Cazoo Group's Days Payable for the six months ended in Jun. 2023 was 16.76.
Therefore, Cazoo Group's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2023 was 83.58.

Cazoo Group  (OTCPK:CZOOF) 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.

Cazoo Group Cash Conversion Cycle Related Terms

Cazoo Group Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Cazoo Group'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.

Cazoo Group Cash Conversion Cycle Chart

Cazoo Group Annual Data
Trend Dec19 Dec20 Dec21 Dec22
Cash Conversion Cycle
10,795.85 204.67 156.55 106.90

Cazoo Group Semi-Annual Data
Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Cash Conversion Cycle Get a 7-Day Free Trial 102.06 129.19 124.11 85.82 83.58

CZOOF vs CTNT, JZXN, SFTGQ: Cash Conversion Cycle Comparison

For the Auto & Truck Dealerships subindustry, Cazoo Group'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.

Cazoo Group Cash Conversion Cycle vs Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Cazoo Group's Cash Conversion Cycle distribution charts can be found below:

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


Cazoo Group 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.

Cazoo Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=20.65+93.69-7.44
=106.90

Cazoo Group's Cash Conversion Cycle for the quarter that ended in Jun. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=18.61+81.73-16.76
=83.58

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 83.58 mean?
Cazoo Group (CZOOF) has a Cash Conversion Cycle of 83.58 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Cazoo Group and its competitors.
Is Cazoo Group's Cash Conversion Cycle too high?
Cazoo Group's current Cash Conversion Cycle is 83.58. The Vehicles & Parts industry median Cash Conversion Cycle is 67.42. Cazoo Group's value of 83.58 is 24% above this industry median.
How does Cazoo Group's Cash Conversion Cycle compare to CTNT and JZXN?
Cazoo Group's Cash Conversion Cycle of 83.58 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.42. Cazoo Group's value of 83.58 is 24% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.42, based on 1,325 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cazoo Group's current Cash Conversion Cycle of 83.58 is 24% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Cazoo Group and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cazoo Group's current Cash Conversion Cycle is 83.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cazoo Group stock overvalued right now?
Cazoo Group (CZOOF) has a current Cash Conversion Cycle of 83.58. The current Cash Conversion Cycle is 83.58 and 24% above the Vehicles & Parts industry median of 67.42. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Cazoo Group (CZOOF), the current Cash Conversion Cycle is 83.58 as of Jun. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Cazoo Group Business Description

Address 41 Chalton Street, London, GBR, NW1 1JD
Cazoo Group Ltd transforms the car buying experience for consumers across the UK and Europe. It aims to make buying a car an easy experience, where consumers can simply and seamlessly purchase, finance, or subscribe to a car entirely online for either delivery or collection in less time.