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adidas AG Cash Conversion Cycle

: 107.05 (As of Dec. 2021)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

adidas AG's Days Sales Outstanding for the three months ended in Dec. 2021 was 46.21.
adidas AG's Days Inventory for the three months ended in Dec. 2021 was 136.35.
adidas AG's Days Payable for the three months ended in Dec. 2021 was 75.51.
Therefore, adidas AG's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2021 was 107.05.


adidas AG Cash Conversion Cycle Historical Data

The historical data trend for adidas AG'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.

adidas AG Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 86.19 90.90 80.47 107.82 104.32

adidas AG Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21
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 124.84 108.87 112.23 99.86 107.05

Competitive Comparison

For the Footwear & Accessories subindustry, adidas AG'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.

   

adidas AG Cash Conversion Cycle Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, adidas AG's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where adidas AG's Cash Conversion Cycle falls into.



adidas AG 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.

adidas AG's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=36.76+152.41-84.85
=104.32

adidas AG's Cash Conversion Cycle for the quarter that ended in Dec. 2021 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=46.21+136.35-75.51
=107.05

* 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.


adidas AG  (OTCPK:ADDYY) 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.


adidas AG Cash Conversion Cycle Related Terms

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


adidas AG Business Description

adidas AG logo
Address
Adi-Dassler-Strasse 1, Herzogenaurach, BY, DEU, 91074
Adidas designs, develops, produces, and markets athletic and leisure apparel, footwear, accessories, and sports equipment. Under its eponymous brand, it produces apparel for competitive athletics, casual activewear, and casual fashion. Its fashion brands include Yeezy, Ivy Park, and Y-3. Adidas sells its products in more than 160 countries through more than 2,100 owned retail stores, 15,000 mono-branded franchise stores, 150,000 wholesale doors, and more than 50 e-commerce sites. The company was founded in 1949 in Germany.

adidas AG Headlines

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