MRC Global (MRC Global) Cash Conversion Cycle : 85.03 (As of Dec. 2023)

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What is MRC Global Cash Conversion Cycle?

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

MRC Global's Days Sales Outstanding for the three months ended in Dec. 2023 was 56.32.
MRC Global's Days Inventory for the three months ended in Dec. 2023 was 87.54.
MRC Global's Days Payable for the three months ended in Dec. 2023 was 58.83.
Therefore, MRC Global's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 85.03.

MRC Global Cash Conversion Cycle Historical Data

The historical data trend for MRC Global'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.

MRC Global Cash Conversion Cycle Chart

MRC Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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94.95

105.95

78.37

67.64

74.81

MRC Global Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															71.44	77.20	83.15	79.68	85.03

Competitive Comparison of MRC Global's Cash Conversion Cycle

For the Oil & Gas Equipment & Services subindustry, MRC Global'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.

MRC Global's Cash Conversion Cycle Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, MRC Global's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where MRC Global's Cash Conversion Cycle falls into.

MRC Global 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.

MRC Global'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
	=	49.8	+	76.3	-	51.29
	=	74.81

MRC Global'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
	=	56.32	+	87.54	-	58.83
	=	85.03

MRC Global (NYSE:MRC) 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.

MRC Global Cash Conversion Cycle Related Terms

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MRC Global (MRC Global) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MRC Global Inc (NYSE:MRC) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

1301 McKinney Street, Suite 2300, Houston, TX, USA, 77010

Website

https://www.mrcglobal.com

MRC Global Inc distributes pipes, valves, fittings, and related products and services to the energy industry. Products are often used in the construction, maintenance, repair, and overhaul of equipment used in extreme operating conditions. In these conditions and other environments, MRC's valve products give the customer the ability to control the direction, velocity, and pressure of fluids and gases within transmission networks. In addition, other products can be used to regulate flow and on/off service. MRC's other products, which include pipe, steel fitting, and tubular goods, are used across all of the industries in which the company operates. Specialized services are delivered alongside this array of products to enhance the client relationship.

Executives

Shweta Kurvey-mishra	officer: See Remarks	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Anne Mcentee	director	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Malcolm O'neal	officer: SVP - Human Resources	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Emily K. Shields	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Stephen B. Smith	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Ronald L Jadin	director	100 GRAINGER PARKWAY, LAKE FOREST IL 60045
George John Damiris	director	100 CRESCENT COURT, SUITE 1600, DALLAS TX 75201
Gillian Anderson	officer: See Remarks	1301 MCKINNEY ST., SUITE 2300, HOUSTON TX 77010
Robert J. Saltiel	director, officer: President and CEO	4 GREENWAY PLAZA, HOUSTON TX 77046
Rance C Long	officer: SVP-Business Development	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
John P Mccarthy	officer: SVP-Supply Chain	1301 MCKINNEY STREET, SUITE 2300, HOUSTON TX 77010
Cornell Capital Gp Ii Lp	10 percent owner	C/O CORNELL CAPITAL LLC, 499 PARK AVENUE, 21ST FLOOR, NEW YORK NY 10022
Cornell Investment Partners Llc	10 percent owner	C/O DAVIS POLK & WARDWELL LLP, ATTN: R.A DRUCKER, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Mario Investments Llc	10 percent owner	C/O DAVIS POLK & WARDWELL LLP, ATTN: R.A DRUCKER, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Cornell Capital Special Situations Partners Ii Lp	10 percent owner	C/O CORNELL CAPITAL LLC, 499 PARK AVENUE, 21ST FLOOR, NEW YORK NY 10022