IG Group Holdings (IG Group Holdings) Cash Conversion Cycle : -10,784.65 (As of Nov. 2023)

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What is IG Group Holdings Cash Conversion Cycle?

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

IG Group Holdings's Days Sales Outstanding for the six months ended in Nov. 2023 was 253.53.
IG Group Holdings's Days Inventory for the six months ended in Nov. 2023 was 506.35.
IG Group Holdings's Days Payable for the six months ended in Nov. 2023 was 11544.53.
Therefore, IG Group Holdings's Cash Conversion Cycle (CCC) for the six months ended in Nov. 2023 was -10,784.65.

IG Group Holdings Cash Conversion Cycle Historical Data

The historical data trend for IG Group Holdings'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.

IG Group Holdings Cash Conversion Cycle Chart

IG Group Holdings Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Cash Conversion Cycle

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-2,073.80

-2,275.79

-313.86

-667.39

-597.12

IG Group Holdings Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Cash Conversion Cycle	Get a 7-Day Free Trial															-15,824.73	-316.82	-8,892.83	-170.65	-10,784.65

Competitive Comparison of IG Group Holdings's Cash Conversion Cycle

For the Capital Markets subindustry, IG Group Holdings'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.

IG Group Holdings's Cash Conversion Cycle Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, IG Group Holdings's Cash Conversion Cycle distribution charts can be found below:

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

IG Group Holdings 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.

IG Group Holdings's Cash Conversion Cycle for the fiscal year that ended in May. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	199.5	+	22.81	-	819.43
	=	-597.12

IG Group Holdings's Cash Conversion Cycle for the quarter that ended in Nov. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	253.53	+	506.35	-	11544.53
	=	-10,784.65

IG Group Holdings (OTCPK:IGGRF) 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.

IG Group Holdings Cash Conversion Cycle Related Terms

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IG Group Holdings (IG Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » IG Group Holdings PLC (OTCPK:IGGRF) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

IGGHY:USA IGGl:UK IGG:UK I5G:Germany

Address

Cannon Bridge House, 25 Dowgate Hill, London, GBR, EC4R 2YA

Website

https://www.iggroup.com

IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.