BAE Systems (BAE Systems) Cash Conversion Cycle : 57.10 (As of Dec. 2023)

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What is BAE Systems Cash Conversion Cycle?

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

BAE Systems's Days Sales Outstanding for the six months ended in Dec. 2023 was 57.1.
BAE Systems's Days Inventory for the six months ended in Dec. 2023 was .
BAE Systems's Days Payable for the six months ended in Dec. 2023 was .
Therefore, BAE Systems's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 57.10.

BAE Systems Cash Conversion Cycle Historical Data

The historical data trend for BAE Systems'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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BAE Systems Cash Conversion Cycle Chart

BAE Systems Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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34.24

36.76

32.23

29.43

30.70

BAE Systems Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															35.78	66.11	59.43	64.99	57.10

Competitive Comparison of BAE Systems's Cash Conversion Cycle

For the Aerospace & Defense subindustry, BAE Systems'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.

BAE Systems's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, BAE Systems's Cash Conversion Cycle distribution charts can be found below:

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

BAE Systems 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.

BAE Systems'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
	=	20.92	+	48.57	-	38.79
	=	30.70

BAE Systems's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	57.1	+		-
	=	57.10

BAE Systems (OTCPK:BAESY) 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.

BAE Systems Cash Conversion Cycle Related Terms

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BAE Systems (BAE Systems) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » BAE Systems PLC (OTCPK:BAESY) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

BAESF:USA BAl:UK BA.:UK BSP:Germany

Address

6 Carlton Gardens, Stirling Square, London, GBR, SW1Y 5AD

Website

https://www.baesystems.com

BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the U.S. Department of Defense. For reporting purposes, the company has five operating segments: electronics systems is the group's U.S.- and U.K.-based electronic warfare systems; the cyber, security, and intelligence segment supplies intelligence and security solutions to the U.S. government; platforms and services manufactures combat vehicles and munitions and performs ship repair services to the U.S. Defense Department; the air segment includes BAE's share of U.S. and European air programs as well as its businesses in Saudi Arabia and Australia; and the maritime segment comprises U.K. land- and marine-based activities.