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MercadoLibre Cash Conversion Cycle

: -55.94 (As of Sep. 2021)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

MercadoLibre's Days Sales Outstanding for the three months ended in Sep. 2021 was 3.45.
MercadoLibre's Days Inventory for the three months ended in Sep. 2021 was 17.2.
MercadoLibre's Days Payable for the three months ended in Sep. 2021 was 76.59.
Therefore, MercadoLibre's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2021 was -55.94.


MercadoLibre Cash Conversion Cycle Historical Data

The historical data trend for MercadoLibre'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.

MercadoLibre Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -76.46 -98.83 -99.03 -80.16 -71.24

MercadoLibre Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -58.29 -55.26 -59.43 -52.60 -55.94

Competitive Comparison

For the Internet Retail subindustry, MercadoLibre'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.

   

MercadoLibre Cash Conversion Cycle Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, MercadoLibre's Cash Conversion Cycle distribution charts can be found below:

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



MercadoLibre 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.

MercadoLibre's Cash Conversion Cycle for the fiscal year that ended in Dec. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=3.91+10.22-85.37
=-71.24

MercadoLibre's Cash Conversion Cycle for the quarter that ended in Sep. 2021 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=3.45+17.2-76.59
=-55.94

* 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.


MercadoLibre  (NAS:MELI) 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.


MercadoLibre Cash Conversion Cycle Related Terms

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


MercadoLibre Business Description

MercadoLibre logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
Pasaje Posta 4789, 6th Floor, Buenos Aires, ARG, C1430EKG
Founded in 1999, MercadoLibre's commerce segment (representing 64% of net revenue in 2020) includes online marketplaces in more than a dozen Latin American countries, display and paid search advertising capabilities (MercadoClics), online store management services (MercadoShops), and third-party logistics solutions (MercadoEnvios). Its fintech segment includes an online/offline payment-processing platform (MercadoPago), mobile wallet platform, credit solutions for buyers/sellers, and asset management offerings (Mercado Fondo). The company derives more than 95% of its revenue from Brazil, Argentina, and Mexico.
Executives
Aguzin Alejandro Nicolas director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430DNN
Calemzuk Emiliano director C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Segal Susan director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: SEGAL SUSAN a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Vazquez Mario director TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 430DNN
Malka Meyer director C/O MERCADOLIBRE, INC. ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1C1430CRG
Sallouti Roberto Balls director ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1 C1430CRG
Galperin Marcos director, officer: President and CEO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Tolda Stelleo officer: Executive VP and COO C/O MERCADOLIBRE, INC. TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Ebay Inc 10 percent owner 2025 HAMILTON AVENUE SAN JOSE CA 95125
Rabinovich Daniel officer: EVP-Chief Technology Officer ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Melamud Marcelo officer: VP - Chief Accounting Officer TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Spence A Michael director 121 INNOVATION DR STE 200 IRVINE CA 92612
Arnt Pedro officer: Executive VP and CFO ARIAS 3751, 7TH FLOOR BUENOS AIRES C1 C1430CRG
Osvaldo Gimenez officer: Executive VP - Payments TRONADOR 4890, 8TH FLOOR BUENOS AIRES C1 C1430DNN
Olivan Javier director 62 RIDGE VIEW DRIVE ATHERTON X1 94027

MercadoLibre Headlines

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