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Ferguson (Ferguson) Cash Conversion Cycle

: 60.82 (As of Jan. 2024)
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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Ferguson's Days Sales Outstanding for the three months ended in Jan. 2024 was 45.75.
Ferguson's Days Inventory for the three months ended in Jan. 2024 was 79.32.
Ferguson's Days Payable for the three months ended in Jan. 2024 was 64.25.
Therefore, Ferguson's Cash Conversion Cycle (CCC) for the three months ended in Jan. 2024 was 60.82.


Ferguson Cash Conversion Cycle Historical Data

The historical data trend for Ferguson'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.

Ferguson Annual Data
Trend Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.49 43.76 45.97 49.79 54.95

Ferguson Quarterly Data
Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 63.64 58.36 51.38 51.44 60.82

Competitive Comparison

For the Industrial Distribution subindustry, Ferguson'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.


Ferguson Cash Conversion Cycle Distribution

For the Industrial Distribution industry and Industrials sector, Ferguson's Cash Conversion Cycle distribution charts can be found below:

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



Ferguson 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.

Ferguson's Cash Conversion Cycle for the fiscal year that ended in Jul. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=44.23+72.54-61.82
=54.95

Ferguson's Cash Conversion Cycle for the quarter that ended in Jan. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=45.75+79.32-64.25
=60.82

* 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.


Ferguson  (NYSE:FERG) 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.


Ferguson Cash Conversion Cycle Related Terms

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


Ferguson (Ferguson) Business Description

Traded in Other Exchanges
Address
1020 Eskdale Road, Winnersh Triangle, Wokingham, Berkshire, GBR, RG41 5TS
Ferguson distributes plumbing and HVAC products primarily to repair, maintenance and improvement, new construction, and civil infrastructure markets. It serves over 1 million customers and sources products from 37,000 suppliers. Ferguson engages customers through approximately 1,700 North American branches, over the phone, online, and in residential showrooms. In fiscal 2023, Ferguson derived 95% of its nearly $30 billion of sales in the U.S. According to Modern Distribution Management, Ferguson is the largest industrial and construction distributor in North America. The firm sold its U.K. business in 2021 and is now solely focused on the North American market.
Executives
Kevin Michael Murphy director, officer: Chief Executive Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Samantha J Long officer: Chief Human Resources Officer ONE KELLOGG SQUARE, PO BOX 3599, BATTLE CREEK MI 49016-3599
Ian T. Graham officer: Chief Legal Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Jake Schlicher officer: See Remarks C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Richard Winckler officer: Chief Accounting Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Michael Jacobs officer: Senior VP of Supply Chain 33 COFFEE LANE, WATERBURY VT 05676
Garland Williams officer: Senior Vice President C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Thees William T. Jr officer: See Remarks C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Geoff Drabble director, other: Chairman C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
James A. Paisley officer: See Remarks 500 VOLVO PARKWAY, CHESAPEAKE VA 23320
William Brundage director, officer: Chief Financial Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Victoria Morrissey officer: Chief Marketing Officer C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Brian May director C/O FERGUSON PLC, 1020 ESKDALE ROAD, WINNERSH TRIANGLE, WOKINGHAM, BERKSHIRE X0 RG41 5TS
Alan J. Murray director 11125 GULF SHORE DRIVE, NAPLES FL 34108
James S Metcalf director USG CORP, 125 S FRANKLIN STREET DEPT 188, CHICAGO IL 60606

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