Vale (VALE) Cash Conversion Cycle

: 19.38 (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.

Vale's Days Sales Outstanding for the three months ended in Dec. 2023 was 26.37.
Vale's Days Inventory for the three months ended in Dec. 2023 was 64.87.
Vale's Days Payable for the three months ended in Dec. 2023 was 71.86.
Therefore, Vale's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 19.38.

Vale Cash Conversion Cycle Historical Data

The historical data trend for Vale'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.

Vale Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

36.23

43.66

43.23

41.28

32.90

Vale 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																28.25	42.96	30.36	23.40	19.38

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Vale'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.

Vale Cash Conversion Cycle Distribution

For the Metals & Mining industry and Basic Materials sector, Vale's Cash Conversion Cycle distribution charts can be found below:

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

Vale 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.

Vale'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
	=	37.2	+	69.44	-	73.74
	=	32.90

Vale'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
	=	26.37	+	64.87	-	71.86
	=	19.38

Vale (NYSE:VALE) 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.

Vale Cash Conversion Cycle Related Terms

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Vale (VALE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Vale SA (NYSE:VALE) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

VALE:Mexico 0LBF:UK XVALO:Spain CVLC:Germany CVLC:Germany CVLB:Germany CVLB:Germany CVLC:Germany CVLB:Germany VALE3:Brazil VALE:Argentina

Address

Praia de Botafogo, 186, Salas 501 a 1901, Botafogo, Rio de Janeiro, RJ, BRA, 22250-145

Website

https://www.vale.com

Vale is a large global miner and the world's largest producer of iron ore and pellets. In recent years the company has sold noncore assets such as its fertilizer, coal, and steel operations to concentrate on iron ore, nickel, and copper. Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets. The base metals division is much smaller, consisting of nickel mines and smelters along with copper mines producing copper in concentrate. Vale has agreed to sell a minority 13% stake in its base metals business, which is expected to become effective early in 2024, and which is likely the first step in separating base metals and iron ore.