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LVMH Moet Hennessy Louis Vuitton SE  (OTCPK:LVMUY) Cash Conversion Cycle: 194.26 (As of Jun. 2017)

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

LVMH Moet Hennessy Louis Vuitton SE's Days Sales Outstanding for the six months ended in Jun. 2017 was 21.02.
LVMH Moet Hennessy Louis Vuitton SE's Days Inventory for the six months ended in Jun. 2017 was 275.38.
LVMH Moet Hennessy Louis Vuitton SE's Days Payable for the six months ended in Jun. 2017 was 102.14.
Therefore, LVMH Moet Hennessy Louis Vuitton SE's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2017 was 194.26.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

LVMH Moet Hennessy Louis Vuitton SE Annual Data

Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 197.58 201.80 224.73 213.36 202.47

LVMH Moet Hennessy Louis Vuitton SE Semi-Annual Data

Dec06 Dec07 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Cash Conversion Cycle 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 Premium Member Only Premium Member Only Premium Member Only 240.68 200.31 227.18 197.52 194.26

Competitive Comparison
* 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.


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.

LVMH Moet Hennessy Louis Vuitton SE's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=26.06+293.53-117.12
=202.47

LVMH Moet Hennessy Louis Vuitton SE's Cash Conversion Cycle for the quarter that ended in Jun. 2017 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=21.02+275.38-102.14
=194.26

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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.


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