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Millat Tractors (KAR:MTL) Cash Conversion Cycle : 175.60 (As of Sep. 2024)


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What is Millat Tractors Cash Conversion Cycle?

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

Millat Tractors's Days Sales Outstanding for the three months ended in Sep. 2024 was 9.2.
Millat Tractors's Days Inventory for the three months ended in Sep. 2024 was 259.96.
Millat Tractors's Days Payable for the three months ended in Sep. 2024 was 93.56.
Therefore, Millat Tractors's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 175.60.


Millat Tractors Cash Conversion Cycle Historical Data

The historical data trend for Millat Tractors'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.

Millat Tractors Cash Conversion Cycle Chart

Millat Tractors Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 55.61 37.67 42.81 77.38 53.09

Millat Tractors Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 40.44 40.73 46.45 51.95 175.60

Competitive Comparison of Millat Tractors's Cash Conversion Cycle

For the Farm & Heavy Construction Machinery subindustry, Millat Tractors'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.


Millat Tractors's Cash Conversion Cycle Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Millat Tractors's Cash Conversion Cycle distribution charts can be found below:

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



Millat Tractors 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.

Millat Tractors's Cash Conversion Cycle for the fiscal year that ended in Jun. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=2.8+74.62-24.33
=53.09

Millat Tractors's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=9.2+259.96-93.56
=175.60

* 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.


Millat Tractors  (KAR:MTL) 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.


Millat Tractors Cash Conversion Cycle Related Terms

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Millat Tractors Business Description

Traded in Other Exchanges
N/A
Address
9-KM Sheikhupura Road, Shahdara, P.O Box No. 12023, District Sheikhupura, Lahore, PAK
Millat Tractors Ltd operates in the automobile sector. It is engaged in assembling and manufacturing agricultural tractors, implements and multi-application products. The company's operating segment includes Tractors; Tractor components; Castings and Others. It generates maximum revenue from the Tractors segment. The tractor components segment is engaged in the business of manufacturing automotive, agricultural and industrial vehicle parts and components.