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Great Wall Motor Co (HKSE:02333) Cash Conversion Cycle : -41.26 (As of Dec. 2023)


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What is Great Wall Motor Co Cash Conversion Cycle?

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

Great Wall Motor Co's Days Sales Outstanding for the three months ended in Dec. 2023 was 10.85.
Great Wall Motor Co's Days Inventory for the three months ended in Dec. 2023 was 53.21.
Great Wall Motor Co's Days Payable for the three months ended in Dec. 2023 was 105.32.
Therefore, Great Wall Motor Co's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was -41.26.


Great Wall Motor Co Cash Conversion Cycle Historical Data

The historical data trend for Great Wall Motor Co'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.

Great Wall Motor Co Cash Conversion Cycle Chart

Great Wall Motor Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -112.22 -136.63 -132.73 -84.95 -12.52

Great Wall Motor Co Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Cash Conversion Cycle Get a 7-Day Free Trial 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 -56.29 -79.87 -73.36 -41.26 -21.90

Competitive Comparison of Great Wall Motor Co's Cash Conversion Cycle

For the Auto Manufacturers subindustry, Great Wall Motor Co'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.


Great Wall Motor Co's Cash Conversion Cycle Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Great Wall Motor Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Great Wall Motor Co's Cash Conversion Cycle falls into.



Great Wall Motor Co 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.

Great Wall Motor Co'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
=14.69+64.14-91.35
=-12.52

Great Wall Motor Co'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
=10.85+53.21-105.32
=-41.26

* 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.


Great Wall Motor Co  (HKSE:02333) 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.


Great Wall Motor Co Cash Conversion Cycle Related Terms

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Great Wall Motor Co (HKSE:02333) Business Description

Traded in Other Exchanges
Address
No. 2266 Chaoyang Road South, Hebei Province, Baoding, CHN, 071000
Chinese automobile manufacturer Great Wall Motor is China's market leader in the SUV and pickup truck segments. In 2022, the company sold over 615,000 Haval-branded SUVs and 160,000 WEY- and Tank-branded SUVs, making it the largest SUV manufacturer by sales volume for the 12th year. It also sold more than 195,000 pickup trucks, also ranked number one in sales volume for 25 consecutive years. China's domestic market accounts for about 90% of Great Wall's revenue, with the balance coming from Russia, the Middle East, South Africa, Australia, and Chile, among others.

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