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Rashtriya Chemicals & Fertilizers (NSE:RCF) Cash Conversion Cycle : 31.94 (As of Dec. 2023)


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What is Rashtriya Chemicals & Fertilizers Cash Conversion Cycle?

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

Rashtriya Chemicals & Fertilizers's Days Sales Outstanding for the three months ended in Dec. 2023 was 18.12.
Rashtriya Chemicals & Fertilizers's Days Inventory for the three months ended in Dec. 2023 was 65.83.
Rashtriya Chemicals & Fertilizers's Days Payable for the three months ended in Dec. 2023 was 52.01.
Therefore, Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 31.94.


Rashtriya Chemicals & Fertilizers Cash Conversion Cycle Historical Data

The historical data trend for Rashtriya Chemicals & Fertilizers'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.

Rashtriya Chemicals & Fertilizers Cash Conversion Cycle Chart

Rashtriya Chemicals & Fertilizers Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 410.49 462.60 280.99 149.08 139.58

Rashtriya Chemicals & Fertilizers 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 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 38.64 18.60 80.08 38.44 31.94

Competitive Comparison of Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle

For the Agricultural Inputs subindustry, Rashtriya Chemicals & Fertilizers'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.


Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle falls into.



Rashtriya Chemicals & Fertilizers 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.

Rashtriya Chemicals & Fertilizers's Cash Conversion Cycle for the fiscal year that ended in Mar. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=131.58+73.84-65.84
=139.58

Rashtriya Chemicals & Fertilizers'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
=18.12+65.83-52.01
=31.94

* 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.


Rashtriya Chemicals & Fertilizers  (NSE:RCF) 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.


Rashtriya Chemicals & Fertilizers Cash Conversion Cycle Related Terms

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Rashtriya Chemicals & Fertilizers (NSE:RCF) Business Description

Traded in Other Exchanges
Address
Mahul Road, Administrative Building, Chembur, Mumbai, MH, IND, 400074
Rashtriya Chemicals & Fertilizers Ltd is engaged in the manufacturing and marketing of fertilizers and industrial chemicals. It produces urea, complex fertilizers, bio-fertilizers, micro-nutrients, water-soluble fertilizers, soil conditioners, and a wide range of industrial chemicals and also manufactures basic chemicals. It is also engaged in the production of SSP and sale of imported fertilizer inputs such as DAP, MOP, and NPK fertilizers. the company products also include methanol, Gypsum, Chalk etc. The companies operate into two segments; Fertilizers and Industrial Products. It generates a majority of its revenue from Fertilizers. Geographically, it operates within India and outside India and generates a majority of its revenue from India.

Rashtriya Chemicals & Fertilizers (NSE:RCF) Headlines

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