>
Switch to:

Lululemon Athletica Cash Conversion Cycle

: 109.35 (As of Oct. 2020)
View and export this data going back to 2007. Start your Free Trial

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

Lululemon Athletica's Days Sales Outstanding for the three months ended in Oct. 2020 was 4.88.
Lululemon Athletica's Days Inventory for the three months ended in Oct. 2020 was 134.41.
Lululemon Athletica's Days Payable for the three months ended in Oct. 2020 was 29.94.
Therefore, Lululemon Athletica's Cash Conversion Cycle (CCC) for the three months ended in Oct. 2020 was 109.35.

Lululemon Athletica 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.

Lululemon Athletica Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Cash Conversion Cycle Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 83.22 86.36 87.11 71.33 83.03

Lululemon Athletica Quarterly Data
Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20
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 102.21 79.28 148.54 121.15 109.35
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.

Lululemon Athletica Cash Conversion Cycle Distribution

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


Lululemon Athletica 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.

Lululemon Athletica's Cash Conversion Cycle for the fiscal year that ended in Jan. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=3.69+95.97-16.63
=83.03

Lululemon Athletica's Cash Conversion Cycle for the quarter that ended in Oct. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=4.88+134.41-29.94
=109.35

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

Lululemon Athletica  (NAS:LULU) 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.

Lululemon Athletica Cash Conversion Cycle Related Terms

Lululemon Athletica Cash Conversion Cycle Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)