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Wise (WPLCF) Cash Conversion Cycle : 42.32 (As of Mar. 2025)


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What is Wise Cash Conversion Cycle?

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

Wise's Days Sales Outstanding for the six months ended in Mar. 2025 was 51.77.
Wise's Days Inventory for the six months ended in Mar. 2025 was 0.
Wise's Days Payable for the six months ended in Mar. 2025 was 9.45.
Therefore, Wise's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2025 was 42.32.


Wise Cash Conversion Cycle Historical Data

The historical data trend for Wise'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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Wise Cash Conversion Cycle Chart

Wise Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25
Cash Conversion Cycle
Get a 7-Day Free Trial 30.25 24.78 27.04 23.45 13.89

Wise Semi-Annual Data
Mar19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 28.24 59.69 50.36 48.54 42.32

Competitive Comparison of Wise's Cash Conversion Cycle

For the Information Technology Services subindustry, Wise'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.


Wise's Cash Conversion Cycle Distribution in the Software Industry

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

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


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Wise 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.

Wise's Cash Conversion Cycle for the fiscal year that ended in Mar. 2025 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=22.89+0-9
=13.89

Wise's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=51.77+0-9.45
=42.32

* 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.


Wise  (OTCPK:WPLCF) 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.


Wise Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Wise's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Wise Business Description

Industry
Traded in Other Exchanges
Address
56 Shoreditch High Street, 6th Floor, Tea Building, London, GBR, E1 6JJ
Wise is a currency conversion platform matching where possible offsetting currency transactions across borders to reduce costs. The group focuses primarily on private clients and small and midsize enterprises, but is building out its platform business aimed at providing its services as a backend solution to banks. By operating local accounts in each jurisdiction Wise sends money to or receives money from, this fintech offers faster and cheaper currency transfer services than incumbents (banks). Wise has started to broaden its product offering, issuing its clients debit cards and allowing customers to invest funds into various asset-management products.