GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » WGL Holdings Inc (NYSE:WGL) » Definitions » Cash Conversion Cycle

WGL Holdings (WGL Holdings) Cash Conversion Cycle : 27.42 (As of Mar. 2018)


View and export this data going back to 1940. Start your Free Trial

What is WGL Holdings Cash Conversion Cycle?

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

WGL Holdings's Days Sales Outstanding for the three months ended in Mar. 2018 was 54.67.
WGL Holdings's Days Inventory for the three months ended in Mar. 2018 was 24.65.
WGL Holdings's Days Payable for the three months ended in Mar. 2018 was 51.9.
Therefore, WGL Holdings's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2018 was 27.42.


WGL Holdings Cash Conversion Cycle Historical Data

The historical data trend for WGL Holdings'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.

WGL Holdings Cash Conversion Cycle Chart

WGL Holdings Annual Data
Trend Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 60.42 49.03 37.79 31.01 35.25

WGL Holdings Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.80 59.82 65.73 41.24 27.42

Competitive Comparison of WGL Holdings's Cash Conversion Cycle

For the Utilities - Regulated Gas subindustry, WGL Holdings'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.


WGL Holdings's Cash Conversion Cycle Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, WGL Holdings's Cash Conversion Cycle distribution charts can be found below:

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



WGL Holdings 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.

WGL Holdings's Cash Conversion Cycle for the fiscal year that ended in Sep. 2017 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=59.3+52.35-76.4
=35.25

WGL Holdings's Cash Conversion Cycle for the quarter that ended in Mar. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=54.67+24.65-51.9
=27.42

* 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.


WGL Holdings  (NYSE:WGL) 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.


WGL Holdings Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of WGL Holdings's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


WGL Holdings (WGL Holdings) Business Description

Traded in Other Exchanges
N/A
Address
WGL Holdings' primary operating segment, Washington Gas Light, is a regulated gas distribution utility. This segment serves about 1.1 million customers in Maryland, Virginia, and the Washington, D.C., metro area. The nonregulated energy marketing segment buys and resells natural gas and electricity in competitive markets, in addition to designing, building, and operating energy systems including solar installations. WGL is signed on to some sizable midstream pipeline projects and angles to expand this business around its utility footprint.
Executives
Karen Hardwick officer: Senior Vice President and GC 1000 MAINE AVENUE, SW, WASHINGTON DC 20024
Dorothy Ramsey officer: Vice President 1000 MAINE AVENUE, SW, WASHINGTON DC 20024
Linda R Gooden director LOCKHEED MARTIN CORPORATION, 6801 ROCKLEDGE DRIVE, BETHESDA MD 20817
Leslie T Thornton officer: Senior VP, GC and Corp. Sec. 3921 COURTLAND CIRCLE, ALEXANDRIA VA 22305
David M Harris director 101 CONSTITUTION AVENUE, NW, WASHINGTON DC 20080
Debra L Lee director C/O BLACK ENTERTAINMENT, 1 BET PLZ. 1900W PLACE N.W., WASHINGTON DC 20018
Terry D Mccallister director, officer: Chairman and CEO 1100 H ST NW, WASHINGTON DC 20080
James F Lafond director 4401 GULF SHORE BLVD NORTH, UNIT 103, NAPLES FL 34103
Clancy George Patrick Jr director 1100 H ST NW, WASHINGTON DC 20080
Stephen C Beasley director THE WILLIAMS COMPANIES, ONCE WILLIAMS CENTER, SUITE 4700, TULSA OK 77002
Diane J Hoskins director 101 CONSTITUTION AVENUE, NW, WASHINGTON DC 20080
Karen Hastie Williams director GANNETT CO INC, 7950 JONES BRANCH DRIVE, MCLEAN VA 22107
Degraffenreidt James H Jr other: Former Chairman and CEO 1100 H ST NW, WASHINGTON DC 20080
Philip A Odeen director N/A, N/A OH 45202

WGL Holdings (WGL Holdings) Headlines

From GuruFocus

WGL Holdings Inc. Reports Operating Results (10-Q)

By gurufocus 10qk 02-07-2011

WGL Holdings Inc. (WGL) Chairman and CEO Terry D Mccallister sells 25,674 Shares

By GuruFocus Research GuruFocus Editor 12-15-2009

WGL Holdings Inc. (WGL) Chairman and CEO Terry D Mccallister sells 5,156 Shares

By GuruFocus Research GuruFocus Editor 04-30-2010

WGL Holdings Inc. (WGL) Chairman and CEO Terry D Mccallister sells 25,674 Shares

By GuruFocus Research GuruFocus Editor 12-15-2009

WGL Holdings Inc. (WGL) President and COO Adrian P Chapman sells 25,999 Shares

By GuruFocus Research GuruFocus Editor 07-27-2010

Why Dividends Matter

By Dividends4Life Dividends4Life 07-09-2014

WGL Holdings Inc. (WGL) Chairman and CEO Terry D Mccallister sells 15,739 Shares

By GuruFocus Research GuruFocus Editor 04-27-2010