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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.
Terex's Days Sales Outstanding for the
three
months ended in Dec. 2023 was 44.52.
Terex's Days Inventory for the
three
months ended in Dec. 2023 was 109.44.
Terex's Days Payable for the
three
months ended in Dec. 2023 was 65.15.
Therefore, Terex's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2023 was 88.81.
The historical data trend for Terex'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.
Terex Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Cash Conversion Cycle | Get a 7-Day Free Trial | 69.37 | 88.18 | 71.85 | 76.50 | 77.69 |
Terex 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 | 75.52 | 79.72 | 78.28 | 87.17 | 88.81 |
For the Farm & Heavy Construction Machinery subindustry, Terex'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.
For the Farm & Heavy Construction Machinery industry and Industrials sector, Terex's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Terex's Cash Conversion Cycle falls into.
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.
Terex'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 |
= | 38.8 | + | 99.83 | - | 60.94 | |
= | 77.69 |
Terex'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 |
= | 44.52 | + | 109.44 | - | 65.15 | |
= | 88.81 |
* 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.
Terex (NYSE:TEX) 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.
Thank you for viewing the detailed overview of Terex's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.
Garrison John L Jr | officer: CEO AND PRESIDENT | C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
Amy George | officer: Senior V.P. Human Resources | C/O TEREX CORPORATION, 200 NYALA FARMS ROAD, WESTPORT CT 06880 |
Stephen Johnston | officer: Chief Accounting Officer | C/O TEREX CORP, 200 NYALA FARM ROAD, WESTPOT CT 06880 |
David A Sachs | director | C/O TEREX CORP, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
Julie A Beck | officer: Senior Vice President, Finance | ONE INVACARE WAY, ELYRIA OH 44035 |
Andra Rush | director | C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
Oluseun Salami | director | C/O TEREX CORPORATION, 45 GLOVER AVENUE, NORWALK CT 06850 |
Kieran Hegarty | officer: President, Materials Processin | C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
Simon Meester | officer: President - Genie | C/O TEREX CORP, 45 GLOVER AVENUE, 4TH FLOOR, NORWALK CT 06850 |
Scott Posner | officer: Senior V.P., Gen Counsel Sec. | C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
Paula H Cholmondeley | director | 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991 |
John D Sheehan | officer: Senior Vice President, CFO | 5725 DELPHI DRIVE, TROY MI 48098 |
Mark I Clair | officer: VP Controller & CAO | C/O HEXCEL CORPORATION, 281 TRESSER BOULEVARD, STAMFORD CT 06901 |
Christopher Rossi | director | C/O KENNAMETAL INC., 525 WILLIAM PENN PLACE, 33RD FLOOR, PITTSBURGH PA 15219 |
Matthew Fearon | officer: President Terex AWP | C/O TEREX CORPORATION, 200 NYALA FARM ROAD, WESTPORT CT 06880 |
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