Reckitt Benckiser Group (Reckitt Benckiser Group) Cash Conversion Cycle : -75.65 (As of Dec. 2023)

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What is Reckitt Benckiser Group Cash Conversion Cycle?

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

Reckitt Benckiser Group's Days Sales Outstanding for the six months ended in Dec. 2023 was 49.31.
Reckitt Benckiser Group's Days Inventory for the six months ended in Dec. 2023 was 106.33.
Reckitt Benckiser Group's Days Payable for the six months ended in Dec. 2023 was 231.29.
Therefore, Reckitt Benckiser Group's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was -75.65.

Reckitt Benckiser Group Cash Conversion Cycle Historical Data

The historical data trend for Reckitt Benckiser Group'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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Reckitt Benckiser Group Cash Conversion Cycle Chart

Reckitt Benckiser Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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-25.38

-68.84

-37.91

7.16

8.40

Reckitt Benckiser Group 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															-94.36	-81.12	-69.52	-69.04	-75.65

Competitive Comparison of Reckitt Benckiser Group's Cash Conversion Cycle

For the Household & Personal Products subindustry, Reckitt Benckiser Group'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.

Reckitt Benckiser Group's Cash Conversion Cycle Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Reckitt Benckiser Group's Cash Conversion Cycle falls into.

Reckitt Benckiser Group 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.

Reckitt Benckiser Group'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
	=	42.03	+	105.91	-	139.54
	=	8.40

Reckitt Benckiser Group'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
	=	49.31	+	106.33	-	231.29
	=	-75.65

Reckitt Benckiser Group (OTCPK:RBGPF) 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.

Reckitt Benckiser Group Cash Conversion Cycle Related Terms

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Reckitt Benckiser Group (Reckitt Benckiser Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Reckitt Benckiser Group PLC (OTCPK:RBGPF) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

RBGLY:USA RB:Mexico RKTl:UK RKT:UK 3RB:Germany

Address

103-105 Bath Road, Slough, Berkshire, GBR, SL1 3UH

Website

https://www.reckitt.com

Reckitt Benckiser was formed in 1999 through the merger of the British firm Reckitt & Colman and Dutch-based Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold the number-one or -two positions in their categories globally. Reckitt has repositioned its portfolio and has entered the infant formula market through the acquisition of Mead Johnson in 2017, expanded its consumer health presence by acquiring Schiff Nutrition, K-Y, and Biofreeze, and has exited the food industry. The firm operates in 60 countries and sells products in more than 200, generating around 35% of sales from emerging markets.