BRF (BRFS) Cash Conversion Cycle

: 4.59 (As of Dec. 2023)

View and export this data going back to 1997. Start your Free Trial

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

BRF's Days Sales Outstanding for the three months ended in Dec. 2023 was 28.02.
BRF's Days Inventory for the three months ended in Dec. 2023 was 81.08.
BRF's Days Payable for the three months ended in Dec. 2023 was 104.51.
Therefore, BRF's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 4.59.

BRF Cash Conversion Cycle Historical Data

The historical data trend for BRF'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.

BRF Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

17.06

19.45

18.00

12.52

7.43

BRF Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash Conversion Cycle																10.96	9.56	7.82	5.97	4.59

Competitive Comparison

For the Packaged Foods subindustry, BRF'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.

BRF Cash Conversion Cycle Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, BRF's Cash Conversion Cycle distribution charts can be found below:

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

BRF 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.

BRF'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
	=	29.54	+	82.99	-	105.1
	=	7.43

BRF'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
	=	28.02	+	81.08	-	104.51
	=	4.59

BRF (NYSE:BRFS) 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.

BRF Cash Conversion Cycle Related Terms

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

BRF (BRFS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » BRF SA (NYSE:BRFS) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

BRFS:Mexico P5Y:Germany BRFS3:Brazil BRFS:Argentina

Address

Avenida das Nacoes Unidas, 8501 – 1st Floor, Pinheiros, Sao Paulo, SP, BRA, 05425-070

Website

https://www.brf-global.com

BRF SA is an international producer of fresh and frozen protein foods. The firm's segments are In natura (poultry, pork, bovine, and other), Processed foods, and Other sales. The product portfolio includes marinated, frozen, whole and cut meat, specialty meats, portioned products, and frozen prepared entrees. The company also offers margarine, sweet specialties, sandwiches, mayonnaise, and animal feed. Its most well-known brands are Sadia, Chester, Perdix, Paty, Perdigao, and Qualy. Internationally, the portfolio's leading brand is Sadia, which is present in multiple categories in Middle Eastern countries. Geographically, sales are distributed evenly between Brazil and international markets.