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Apple Cash Conversion Cycle

: -50.75 (As of Jun. 2020)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Apple's Days Sales Outstanding for the three months ended in Jun. 2020 was 27.34.
Apple's Days Inventory for the three months ended in Jun. 2020 was 9.02.
Apple's Days Payable for the three months ended in Jun. 2020 was 87.11.
Therefore, Apple's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2020 was -50.75.

Apple Cash Conversion Cycle 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.

Apple Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -60.35 -70.72 -76.99 -82.89 -63.06

Apple Quarterly Data
Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
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 -43.93 -64.96 -45.27 -48.28 -50.75
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.

Apple Cash Conversion Cycle Distribution

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


Apple 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.

Apple's Cash Conversion Cycle for the fiscal year that ended in Sep. 2019 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=32.16+9.09-104.31
=-63.06

Apple's Cash Conversion Cycle for the quarter that ended in Jun. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=27.34+9.02-87.11
=-50.75

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

Apple  (NAS:AAPL) 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.

Apple Cash Conversion Cycle Related Terms

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