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Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Cash Conversion Cycle : -9.66 (As of Mar. 2018)


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What is Chicago Bridge & Iron Co NV Cash Conversion Cycle?

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

Chicago Bridge & Iron Co NV's Days Sales Outstanding for the three months ended in Mar. 2018 was 39.88.
Chicago Bridge & Iron Co NV's Days Inventory for the three months ended in Mar. 2018 was 6.22.
Chicago Bridge & Iron Co NV's Days Payable for the three months ended in Mar. 2018 was 55.76.
Therefore, Chicago Bridge & Iron Co NV's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2018 was -9.66.


Chicago Bridge & Iron Co NV Cash Conversion Cycle Historical Data

The historical data trend for Chicago Bridge & Iron Co NV'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.

Chicago Bridge & Iron Co NV Cash Conversion Cycle Chart

Chicago Bridge & Iron Co NV Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.94 8.91 9.03 -0.30 -10.88

Chicago Bridge & Iron Co NV Quarterly Data
Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18
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 -10.74 6.28 -11.07 -12.31 -9.66

Competitive Comparison of Chicago Bridge & Iron Co NV's Cash Conversion Cycle

For the Engineering & Construction subindustry, Chicago Bridge & Iron Co NV'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.


Chicago Bridge & Iron Co NV's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, Chicago Bridge & Iron Co NV's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Chicago Bridge & Iron Co NV's Cash Conversion Cycle falls into.



Chicago Bridge & Iron Co NV 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.

Chicago Bridge & Iron Co NV's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=34.14+7.99-53.01
=-10.88

Chicago Bridge & Iron Co NV's Cash Conversion Cycle for the quarter that ended in Mar. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=39.88+6.22-55.76
=-9.66

* 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.


Chicago Bridge & Iron Co NV  (NYSE:CBI) 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.


Chicago Bridge & Iron Co NV Cash Conversion Cycle Related Terms

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Chicago Bridge & Iron Co NV (Chicago Bridge & Iron Co NV) Business Description

Traded in Other Exchanges
N/A
Address
Founded in 1889, Chicago Bridge & Iron provides a wide range of services, including conceptual design, technology, engineering, procurement, fabrication, modularization, construction, commissioning, maintenance, program management, and environmental services, to customers in the global energy infrastructure market. It also provides diversified government services. It generated 2017 adjusted revenue and adjusted EBIT of $5.8 billion and a loss of $180 million, respectively. CB&I employs 34,000 at active projects in more than 70 countries.
Executives
James H Miller director C/O CROWN HOLDINGS, INC., 770 TOWNSHIP LINE ROAD, YARDLEY PA 19067
W Craig Kissel director
Alexander Forbes I J director 10560 DR. MARTIN LUTHER KING JR. ST N, ST. PETERSBURG FL 33716-3718
Deborah M Fretz director 1801 MARKET STREET, PHILADELPHIA PA 19103
L Richard Flury director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Richard W. Heo officer: Executive Vice President 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
Westley S. Stockton officer: VP, Controller, CAO 2103 RESEARCH FOREST DRIVE, THE WOODLANDS TX 77380
James R Bolch director C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645
Marsha C Williams director EQUITY OFFICE PROPERTIES, CHICAGO IL 60606
Michael S Taff officer: Executive Vice President & CFO 777 N ELDRIDGE PARKWAY, HOUSTON TX 77079
Larry D Mcvay director 2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Philip K Asherman director, officer: President and CEO 1450 LAKE ROBBINS DR.,, SUITE 400, THE WOODLANDS TX 77380
Chandler Richard E Jr officer: EVP and Chief Legal Officer 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380
Sheila B Feldman officer: Executive Vice President
Ronald A Ballschmiede officer: Executive Vice President & CFO 1800 HUGHES LANDING BLVD, SUITE 250, THE WOODLANDS TX 77380

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