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Apple Inc  (NAS:AAPL) Cash Conversion Cycle: -86.11 (As of Sep. 2018)

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

Apple Inc's Days Sales Outstanding for the three months ended in Sep. 2018 was 33.64.
Apple Inc's Days Inventory for the three months ended in Sep. 2018 was 11.63.
Apple Inc's Days Payable for the three months ended in Sep. 2018 was 131.38.
Therefore, Apple Inc's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2018 was -86.11.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Apple Inc Annual Data

Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -57.02 -60.35 -70.72 -76.99 -82.89

Apple Inc Quarterly Data

Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
Cash Conversion Cycle 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 Premium Member Only Premium Member Only Premium Member Only -81.45 -73.68 -47.01 -63.88 -86.11

Competitive Comparison
* 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.


Apple Inc Distribution

* The bar in red indicates where Apple Inc's Cash Conversion Cycle falls into.



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.

Apple Inc's Cash Conversion Cycle for the fiscal year that ended in Sep. 2018 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=31.86+9.82-124.57
=-82.89

Apple Inc's Cash Conversion Cycle for the quarter that ended in Sep. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=33.64+11.63-131.38
=-86.11

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


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