British American Tobacco (British American Tobacco) Cash Conversion Cycle

: -265.72 (As of Dec. 2023)

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

British American Tobacco's Days Sales Outstanding for the six months ended in Dec. 2023 was 51.61.
British American Tobacco's Days Inventory for the six months ended in Dec. 2023 was 401.92.
British American Tobacco's Days Payable for the six months ended in Dec. 2023 was 719.25.
Therefore, British American Tobacco's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was -265.72.

British American Tobacco Cash Conversion Cycle Historical Data

The historical data trend for British American Tobacco'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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British American Tobacco Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

-278.94

-264.60

-279.74

-322.24

-315.72

British American Tobacco 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																-208.44	-262.26	-242.19	-275.89	-265.72

Competitive Comparison

For the Tobacco subindustry, British American Tobacco'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.

British American Tobacco Cash Conversion Cycle Distribution

For the Tobacco Products industry and Consumer Defensive sector, British American Tobacco's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where British American Tobacco's Cash Conversion Cycle falls into.

British American Tobacco 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.

British American Tobacco's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	52.33	+	408.76	-	776.81
	=	-315.72

British American Tobacco'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
	=	51.61	+	401.92	-	719.25
	=	-265.72

British American Tobacco (NYSE:BTI) 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.

British American Tobacco Cash Conversion Cycle Related Terms

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British American Tobacco (British American Tobacco) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » British American Tobacco PLC (NYSE:BTI) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

BTI:South Africa BTAFF:USA BATSl:UK BATS:UK BMTA:Germany BMT:Germany BMT:Germany BMT:Germany BMTA:Germany BMT:Germany B1TI34:Brazil

Address

Globe House, 4 Temple Place, London, GBR, WC2R 2PG

Website

https://www.bat.com

Following the acquisition of Reynolds American, British American Tobacco is neck-and-neck with Philip Morris International to be the largest listed Global tobacco company--slightly larger than PMI on net revenue, but slightly smaller on total tobacco volume. British American's Global Drive Brands are Dunhill, Kent, Pall Mall, Lucky Strike, and Rothmans, and it also owns Newport and Camel in the U.S. The firm also sells vapor e-cigarettes, primarily its Vuse brand, heated tobacco, with Glo, as well Velo modern oral tobacco products. The company holds 29% of ITC Limited, the leading Indian cigarette-maker.