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United Malt Group (ASX:UMG) Cash Conversion Cycle : 158.51 (As of Mar. 2023)


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What is United Malt Group Cash Conversion Cycle?

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

United Malt Group's Days Sales Outstanding for the six months ended in Mar. 2023 was 61.83.
United Malt Group's Days Inventory for the six months ended in Mar. 2023 was 149.81.
United Malt Group's Days Payable for the six months ended in Mar. 2023 was 53.13.
Therefore, United Malt Group's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2023 was 158.51.

United Malt Group Cash Conversion Cycle Historical Data

The historical data trend for United Malt 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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United Malt Group Cash Conversion Cycle Chart

United Malt Group Annual Data
Trend Sep19 Sep20 Sep21 Sep22
Cash Conversion Cycle
- 145.53 155.55 143.24

United Malt Group Semi-Annual Data
Sep20 Mar21 Sep21 Mar22 Sep22 Mar23
Cash Conversion Cycle Get a 7-Day Free Trial 158.50 142.80 144.15 133.32 158.51

Competitive Comparison of United Malt Group's Cash Conversion Cycle

For the Beverages - Brewers subindustry, United Malt 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.

United Malt Group's Cash Conversion Cycle Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, United Malt Group's Cash Conversion Cycle distribution charts can be found below:

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


United Malt 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.

United Malt Group's Cash Conversion Cycle for the fiscal year that ended in Sep. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=58.93+134.3-49.99
=143.24

United Malt Group's Cash Conversion Cycle for the quarter that ended in Mar. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=61.83+149.81-53.13
=158.51

* 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.

United Malt Group  (ASX:UMG) 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.

United Malt Group Cash Conversion Cycle Related Terms

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United Malt Group (ASX:UMG) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » United Malt Group Ltd (ASX:UMG) » Definitions » Cash Conversion Cycle
Comparable Companies
ASX:GDA ASX:TSI ASX:MCL XBRU:ABI XAMS:HEIA BSP:ABEV3 HKSE:01876 XAMS:HEIO TSE:2502 HKSE:00291 OCSE:CARL B SHSE:600600 TSX:TPX.B TAP TSE:2503 XZIM:DLTA.ZW SHSE:605499 TSE:2587 SHSE:600132 BOM:532478
Traded in Other Exchanges
N/A
Address
18110 SE 34th Street, Suite 240, Vancouver, WA, USA, 98683
Website
https://www.unitedmalt.com
United Malt processes grains into malt, primarily for brewing into beer. The company is the fourth largest global malt processor and works with some of the world's largest breweries and distillers as well as fast growing craft producers. The business has capacity to process about 1.25 million metric tons of malt annually, primarily housed in the U.S. and Canada, serving the North American beer market, with additional facilities in Australia (serving both domestic brewing and exports to Asia) and the U.K. (selling to Scotch whisky distillers).

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