Dr Reddy's Laboratories (Dr Reddy's Laboratories) Cash Conversion Cycle : 178.87 (As of Dec. 2023)

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What is Dr Reddy's Laboratories Cash Conversion Cycle?

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

Dr Reddy's Laboratories's Days Sales Outstanding for the three months ended in Dec. 2023 was 93.78.
Dr Reddy's Laboratories's Days Inventory for the three months ended in Dec. 2023 was 179.05.
Dr Reddy's Laboratories's Days Payable for the three months ended in Dec. 2023 was 93.96.
Therefore, Dr Reddy's Laboratories's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 178.87.

Dr Reddy's Laboratories Cash Conversion Cycle Historical Data

The historical data trend for Dr Reddy's Laboratories'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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Dr Reddy's Laboratories Cash Conversion Cycle Chart

Dr Reddy's Laboratories Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Cash Conversion Cycle

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214.15

208.89

213.94

226.54

224.67

Dr Reddy's Laboratories 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	Get a 7-Day Free Trial															187.01	198.20	192.26	179.84	178.87

Competitive Comparison of Dr Reddy's Laboratories's Cash Conversion Cycle

For the Drug Manufacturers - Specialty & Generic subindustry, Dr Reddy's Laboratories'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.

Dr Reddy's Laboratories's Cash Conversion Cycle Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Dr Reddy's Laboratories's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Dr Reddy's Laboratories's Cash Conversion Cycle falls into.

Dr Reddy's Laboratories 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.

Dr Reddy's Laboratories'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
	=	107.31	+	177.49	-	60.13
	=	224.67

Dr Reddy's Laboratories'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
	=	93.78	+	179.05	-	93.96
	=	178.87

Dr Reddy's Laboratories (NYSE:RDY) 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.

Dr Reddy's Laboratories Cash Conversion Cycle Related Terms

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Dr Reddy's Laboratories (Dr Reddy's Laboratories) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Dr Reddy's Laboratories Ltd (NYSE:RDY) » Definitions » Cash Conversion Cycle

Traded in Other Exchanges

DRREDDY:India 500124:India RDDA:Germany RDDA:Germany R1DY34:Brazil

Address

8-2-337, Road No. 3, Banjara Hills, Hyderabad, TG, IND, 500 034

Website

https://www.drreddys.com

Dr. Reddy's is one of the largest generic drug manufacturers in the world. It has a significant presence in North America, a region that makes up roughly half of its generics sales, and it services India (22% of its generics sales), Russia (12%), and certain European and Latin American countries. Beyond simple generics, Dr. Reddy's also has a solid portfolio of injectables which make up 25% of its North America sales. In branded generic markets like India, Dr. Reddy's has established a compelling presence with its strong brand name and earned a top five spot in key therapeutic areas including oncology and gastroenterology. Dr. Reddy's also has an active pharmaceutical ingredient business that manufactures over 150 APIs and sells in over 75 countries.