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RXT (Rackspace Technology) Cash Conversion Cycle : -25.06 (As of Dec. 2024)


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What is Rackspace Technology Cash Conversion Cycle?

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

Rackspace Technology's Days Sales Outstanding for the three months ended in Dec. 2024 was 40.63.
Rackspace Technology's Days Inventory for the three months ended in Dec. 2024 was 0.
Rackspace Technology's Days Payable for the three months ended in Dec. 2024 was 65.69.
Therefore, Rackspace Technology's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2024 was -25.06.


Rackspace Technology Cash Conversion Cycle Historical Data

The historical data trend for Rackspace Technology'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.

Rackspace Technology Cash Conversion Cycle Chart

Rackspace Technology Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial -1.64 5.24 2.97 -9.62 -25.53

Rackspace Technology Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -24.89 -26.45 -25.23 -25.80 -25.06

Competitive Comparison of Rackspace Technology's Cash Conversion Cycle

For the Software - Infrastructure subindustry, Rackspace Technology'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.


Rackspace Technology's Cash Conversion Cycle Distribution in the Software Industry

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

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



Rackspace Technology 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.

Rackspace Technology's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=42.57+0-68.1
=-25.53

Rackspace Technology's Cash Conversion Cycle for the quarter that ended in Dec. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=40.63+0-65.69
=-25.06

* 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.


Rackspace Technology  (NAS:RXT) 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.


Rackspace Technology Cash Conversion Cycle Related Terms

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Rackspace Technology Business Description

Traded in Other Exchanges
N/A
Address
19122 US Highway 281 North, Suite 128, San Antonio, TX, USA, 78258
Rackspace Technology Inc is an end-to-end, hybrid, multi cloud technology services company. It designs, builds and operates its customers' cloud environments across all technology platforms, irrespective of technology stack or deployment model. The company's solutions include Application Services; Data; Colocation; Cloud; Managed Hosting; Professional Services; and Security & Compliance. It operates in segments namely, Private Cloud, and Public Cloud. It generates revenue through the sale of consumption-based contracts for its service offerings and from the sale of professional services related to designing and building custom solutions.
Executives
Amar Maletira officer: President & CFO C/O VIAVI SOLUTIONS INC., 430 NORTH MCCARTHY BOULEVARD, MILPITAS CA 95035
Srini Koushik officer: Chief Technology Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Dharmendra Kumar Sinha officer: EVP, President, Public Cloud C/O COGNIZANT TECHNOLOGY SOLUTIONS CORP, 300 FRANK W. BURR BLVD., STE. 36, 6 FL., TEANECK NJ 07666
Mark A. Marino other: Vice President & CAO 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Kellie Teal-guess officer: Chief Human Resources Officer 1 FANATICAL PLACE, C/O RACKSPACE TECHNOLOGY, INC., SAN ANTONIO TX 78218
Anthony C. Roberts director 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Brian Lillie officer: EVP, President Private Cloud 1485 BROOKMILL ROAD, LOS ALTOS CA 94024
Casey L. Shilling officer: SVP - Chief Marketing Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Rackspace Technology, Inc. director 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Anthony Scott director 25501 WEST VALLEY PARKWAY, OLATHE KS 66061
Betsy S Atkins director
Naushaza Molu officer: EVP, Chief Financial Officer 1 FANATICAL PLACE, SAN ANTONIO TX 78218
Shashank Samant director 6600 NORTH MILITARY TRAIL, LEGAL DEPARTMENT, BOCA RATON FL 33496
Gregory S. Hrncir officer: SVP - Chief Operations Officer 1 FANATICAL PLACE, CITY OF WINDCREST, SAN ANTONIO TX 78218
Timothy Campos director C/O JDS UNIPHASE CORPORATION, 430 N MCCARTHY BOULEVARD, MILPITAS CA 95035