KMG Chemicals (KMG Chemicals) Cash Conversion Cycle : 65.41 (As of Jul. 2018)

View and export this data going back to 1956. Start your Free Trial

What is KMG Chemicals Cash Conversion Cycle?

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

KMG Chemicals's Days Sales Outstanding for the three months ended in Jul. 2018 was 45.22.
KMG Chemicals's Days Inventory for the three months ended in Jul. 2018 was 69.64.
KMG Chemicals's Days Payable for the three months ended in Jul. 2018 was 49.45.
Therefore, KMG Chemicals's Cash Conversion Cycle (CCC) for the three months ended in Jul. 2018 was 65.41.

KMG Chemicals Cash Conversion Cycle Historical Data

The historical data trend for KMG Chemicals'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.

KMG Chemicals Cash Conversion Cycle Chart

KMG Chemicals Annual Data

Trend

Jul09

Jul10

Jul11

Jul12

Jul13

Jul14

Jul15

Jul16

Jul17

Jul18

Cash Conversion Cycle

Get a 7-Day Free Trial

61.73

56.57

60.09

71.28

66.20

KMG Chemicals Quarterly Data
	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18
Cash Conversion Cycle	Get a 7-Day Free Trial															65.71	64.57	64.59	65.99	65.41

Competitive Comparison of KMG Chemicals's Cash Conversion Cycle

For the Specialty Chemicals subindustry, KMG Chemicals'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.

KMG Chemicals's Cash Conversion Cycle Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, KMG Chemicals's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where KMG Chemicals's Cash Conversion Cycle falls into.

KMG Chemicals 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.

KMG Chemicals's Cash Conversion Cycle for the fiscal year that ended in Jul. 2018 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	44.32	+	68.6	-	46.72
	=	66.20

KMG Chemicals's Cash Conversion Cycle for the quarter that ended in Jul. 2018 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	45.22	+	69.64	-	49.45
	=	65.41

KMG Chemicals (NYSE:KMG) 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.

KMG Chemicals Cash Conversion Cycle Related Terms

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

KMG Chemicals (KMG Chemicals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » KMG Chemicals Inc (NYSE:KMG) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.kmgchemicals.com

KMG Chemicals Inc manufactures and sells a variety of chemicals and chemical-based products. The firm organizes itself into two segments based on product type. The electronic chemicals segment, which generates the majority of revenue, sells chemicals primarily to manufacturers of semiconductors. The other chemicals segment sells industrial sealants and lubricants primarily to the oil and gas storage and distribution industry as well as wood treatment chemicals used primarily to treat utility poles and cross arms. The majority of revenue comes from the United States.

Executives

Hunter John C Iii	director	C/O PENFORD CORPORATION, 7094 S. REVERE PARKWAY, CENTENNIAL CO 80112-3932
Karen A. Twitchell	director	9 COURTLANDT PLACE, HOUSTON TX 77006
Christopher T. Fraser	director, officer: President and CEO	9555 WEST SAM HOUSTON PARKWAY SOUTH, SUITE 600, HOUSTON TX 77099
Margaret C Montana	director	910 LOUISIANA STREET, HOUSTON TX 77002
George W Gilman	director	710 N. POST OAK RD., SUITE 400, HOUSTON TX 77024
James Gentilcore	director	NINE HAMPSHIRE STREET, MANSFIELD MA 02048
Malinda G Passmore	officer: VP and CFO	9555 W SAM HOUSTON PARKWAY S, SUITE 600, HOUSTON TX 77099
Stephen A Thorington	director	700 MILAM, SUITE 3100, HOUSTON TX 77002
Gendell Jeffrey L Et Al	other: Former 10% Owner	200 PARK AVENUE SUITE 3900, NEW YORK NY 10166