Nissan Motor Co (Nissan Motor Co) Cash Conversion Cycle

: 15.43 (As of Dec. 2023)

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

Nissan Motor Co's Days Sales Outstanding for the three months ended in Dec. 2023 was 12.13.
Nissan Motor Co's Days Inventory for the three months ended in Dec. 2023 was 71.14.
Nissan Motor Co's Days Payable for the three months ended in Dec. 2023 was 67.84.
Therefore, Nissan Motor Co's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 15.43.

Nissan Motor Co Cash Conversion Cycle Historical Data

The historical data trend for Nissan Motor Co'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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Nissan Motor Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Cash Conversion Cycle

7.17

8.63

10.22

9.97

12.88

Nissan Motor Co 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																15.53	11.86	11.59	12.65	15.43

Competitive Comparison

For the Auto Manufacturers subindustry, Nissan Motor Co'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.

Nissan Motor Co Cash Conversion Cycle Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Nissan Motor Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Nissan Motor Co's Cash Conversion Cycle falls into.

Nissan Motor Co 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.

Nissan Motor Co's Cash Conversion Cycle for the fiscal year that ended in Mar. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	17.9	+	66.59	-	71.61
	=	12.88

Nissan Motor Co'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
	=	12.13	+	71.14	-	67.84
	=	15.43

Nissan Motor Co (OTCPK:NSANY) 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.

Nissan Motor Co Cash Conversion Cycle Related Terms

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Nissan Motor Co (Nissan Motor Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Nissan Motor Co Ltd (OTCPK:NSANY) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

NSANF:USA 7201:Japan NISA:Germany NISA:Austria

Address

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa, JPN, 220-8686

Website

http://www.nissan-global.com

While Nissan sold 3.3 million vehicles last fiscal year, total calendar 2022 Renault-Nissan-Mitsubishi alliance sales volume of 6.5 million vehicles makes the group the fourth-largest vehicle seller in the world, behind Toyota at 10.3 million, Volkswagen at 8.5 million, and Hyundai/Kia with 6.8 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases but also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by Renault, while Nissan in turn owns 15% of Renault. Nissan also owns a 34% stake in Mitsubishi Motors. Under a new alliance agreement expected to be completed before the end of December 2023, Nissan and Renault will have cross-shareholding capped at 15% voting rights for each company.