GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » IHS Holding Ltd (NYSE:IHS) » Definitions » Cash Conversion Cycle

IHS Holding (IHS Holding) Cash Conversion Cycle : -44.19 (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is IHS Holding Cash Conversion Cycle?

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

IHS Holding's Days Sales Outstanding for the three months ended in Dec. 2023 was 70.25.
IHS Holding's Days Inventory for the three months ended in Dec. 2023 was 19.73.
IHS Holding's Days Payable for the three months ended in Dec. 2023 was 134.17.
Therefore, IHS Holding's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was -44.19.


IHS Holding Cash Conversion Cycle Historical Data

The historical data trend for IHS Holding'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.

IHS Holding Cash Conversion Cycle Chart

IHS Holding Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial -78.28 -69.08 -62.39 -23.15 7.55

IHS Holding Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -10.92 -45.66 -80.30 -39.70 -44.19

Competitive Comparison of IHS Holding's Cash Conversion Cycle

For the Telecom Services subindustry, IHS Holding'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.


IHS Holding's Cash Conversion Cycle Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, IHS Holding's Cash Conversion Cycle distribution charts can be found below:

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



IHS Holding 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.

IHS Holding'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
=109.15+17.71-119.31
=7.55

IHS Holding'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
=70.25+19.73-134.17
=-44.19

* 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.


IHS Holding  (NYSE:IHS) 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.


IHS Holding Cash Conversion Cycle Related Terms

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


IHS Holding (IHS Holding) Business Description

Traded in Other Exchanges
Address
123 Victoria Street, 1 Cathedral Piazza, London, GBR, SW1E 5BP
IHS Holding Ltd is an independent owner, operator, and developer of shared telecommunications infrastructure. The company provides telecommunications infrastructure to its customers, most of who are MNOs, who in turn provide wireless voice and data services to their end-users. Its geographical segments are Nigeria, Sub-Saharan Africa, Middle East and North Africa (MENA), and Latin America (Latam). The majority of its revenue is derived from Nigeria.