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Cash Conversion Cycle

: 0.00 (As of . 20)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

's Days Sales Outstanding for the six months ended in . 20 was .
's Days Inventory for the six months ended in . 20 was .
's Days Payable for the six months ended in . 20 was .
Therefore, 's Cash Conversion Cycle (CCC) for the six months ended in . 20 was 0.00.


Cash Conversion Cycle Historical Data

* 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.

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Annual Data
Trend
Cash Conversion Cycle

Semi-Annual Data
Cash Conversion Cycle

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.

's Cash Conversion Cycle for the fiscal year that ended in . 20 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=+-
=0.00

's Cash Conversion Cycle for the quarter that ended in . 20 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=+-
=0.00

* 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.


  (:) 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.


Cash Conversion Cycle Related Terms


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