Telstra Group (Telstra Group) Cash Conversion Cycle : -54.42 (As of Dec. 2023)

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What is Telstra Group Cash Conversion Cycle?

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

Telstra Group's Days Sales Outstanding for the six months ended in Dec. 2023 was 56.21.
Telstra Group's Days Inventory for the six months ended in Dec. 2023 was 26.74.
Telstra Group's Days Payable for the six months ended in Dec. 2023 was 137.37.
Therefore, Telstra Group's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was -54.42.

Telstra Group Cash Conversion Cycle Historical Data

The historical data trend for Telstra 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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Telstra Group Cash Conversion Cycle Chart

Telstra Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Cash Conversion Cycle

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22.33

31.94

23.49

15.83

4.67

Telstra 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															-18.38	-26.03	-32.00	-36.73	-54.42

Competitive Comparison of Telstra Group's Cash Conversion Cycle

For the Telecom Services subindustry, Telstra 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.

Telstra Group's Cash Conversion Cycle Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telstra Group's Cash Conversion Cycle distribution charts can be found below:

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

Telstra 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.

Telstra Group's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	45.51	+	22.4	-	63.24
	=	4.67

Telstra 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
	=	56.21	+	26.74	-	137.37
	=	-54.42

Telstra Group (OTCPK:TTRAF) 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.

Telstra Group Cash Conversion Cycle Related Terms

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Telstra Group (Telstra Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telstra Group Ltd (OTCPK:TTRAF) » Definitions » Cash Conversion Cycle

Comparable Companies

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TLGPY:USA 5KBA:Germany TLS:Australia

Address

242 Exhibition Street, Level 41, Melbourne, VIC, AUS, 3000

Website

https://www.telstra.com.au

Telstra is Australia's biggest telecommunications group, with material market shares in voice, mobile, data and internet, spanning retail, corporate and wholesale segments. Its fixed-line copper network will gradually be wound down as the government-owned National Broadband Network rolls out to all Australian households, but the group will be compensated accordingly. Investments into network applications and services, media, technology and overseas are being made to replace the expected lost fixed-line earnings longer term, while continuing cost-cuts are also critical.