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Clover Health Investments (STU:7QD) Cash Conversion Cycle : -13.87 (As of Jun. 2024)


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What is Clover Health Investments Cash Conversion Cycle?

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

Clover Health Investments's Days Sales Outstanding for the three months ended in Jun. 2024 was 0.
Clover Health Investments's Days Inventory for the three months ended in Jun. 2024 was 0.
Clover Health Investments's Days Payable for the three months ended in Jun. 2024 was 13.87.
Therefore, Clover Health Investments's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2024 was -13.87.


Clover Health Investments Cash Conversion Cycle Historical Data

The historical data trend for Clover Health Investments'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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Clover Health Investments Cash Conversion Cycle Chart

Clover Health Investments Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
- -18.97 -6.66 -3.11 -7.25

Clover Health Investments Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -16.43 -8.13 -7.46 -12.47 -13.87

Competitive Comparison of Clover Health Investments's Cash Conversion Cycle

For the Healthcare Plans subindustry, Clover Health Investments'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.


Clover Health Investments's Cash Conversion Cycle Distribution in the Healthcare Plans Industry

For the Healthcare Plans industry and Healthcare sector, Clover Health Investments's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Clover Health Investments's Cash Conversion Cycle falls into.



Clover Health Investments 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.

Clover Health Investments'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
=0+0-7.25
=-7.25

Clover Health Investments's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+0-13.87
=-13.87

* 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.


Clover Health Investments  (STU:7QD) 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.


Clover Health Investments Cash Conversion Cycle Related Terms

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Clover Health Investments Business Description

Traded in Other Exchanges
Address
3401 Mallory Lane, Suite 210, Franklin, TN, USA, 37067
Clover Health Investments Corp is a healthcare technology company. It focuses on empowering Medicare physicians to proactively manage chronic diseases through its proprietary software platform, Clover Assistant. This cloud-based solution provides personalized insights to physicians, enabling early detection and management of chronic conditions. Operating in two segments, Insurance and Non-Insurance, Clover Health offers PPO and HMO plans to Medicare Advantage members in multiple states through its Insurance segment. In the Non-Insurance segment, the company participates in the ACO REACH Model. The majority of revenue is generated from the insurance segment, reflecting the significance of its healthcare insurance offerings.

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