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Arco Platform (Arco Platform) Cash Conversion Cycle : 184.66 (As of Jun. 2023)


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What is Arco Platform Cash Conversion Cycle?

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

Arco Platform's Days Sales Outstanding for the three months ended in Jun. 2023 was 172.32.
Arco Platform's Days Inventory for the three months ended in Jun. 2023 was 124.41.
Arco Platform's Days Payable for the three months ended in Jun. 2023 was 112.07.
Therefore, Arco Platform's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2023 was 184.66.


Arco Platform Cash Conversion Cycle Historical Data

The historical data trend for Arco Platform'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.

Arco Platform Cash Conversion Cycle Chart

Arco Platform Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cash Conversion Cycle
Get a 7-Day Free Trial 159.38 160.11 184.02 212.35 189.35

Arco Platform Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
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 173.23 263.22 123.17 174.50 184.66

Competitive Comparison of Arco Platform's Cash Conversion Cycle

For the Education & Training Services subindustry, Arco Platform'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.


Arco Platform's Cash Conversion Cycle Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Arco Platform's Cash Conversion Cycle distribution charts can be found below:

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



Arco Platform 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.

Arco Platform'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
=144.65+146.27-101.57
=189.35

Arco Platform'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
=172.32+124.41-112.07
=184.66

* 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.


Arco Platform  (NAS:ARCE) 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.


Arco Platform Cash Conversion Cycle Related Terms

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Arco Platform (Arco Platform) Business Description

Traded in Other Exchanges
N/A
Address
Rua Augusta 2840, 9th Floor, Suite 91, Consolacao, Sao Paulo, SP, BRA, 01412-100
Arco Platform Ltd provides a complete pedagogical system with technology-enabled features to deliver educational content to private schools in Brazil. Its turnkey curriculum solutions provide educational content in both printed and digital formats delivered through its platform to improve the learning process. Its operating segment includes Core Curriculum and Supplemental Solutions. It generates maximum revenue from the Core Curriculum segment. The Core Curriculum business segment provides solutions that address the Brazilian K-12 curriculum requirements through a personalized and interactive learning experience. Students Access content in various formats, such as digital, video, print, and other audiovisual formats that are aligned with the daily curriculum of their classes.

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