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GEA Group AG Cash Conversion Cycle

: 56.87 (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.

GEA Group AG's Days Sales Outstanding for the three months ended in Sep. 2021 was 50.28.
GEA Group AG's Days Inventory for the three months ended in Sep. 2021 was 82.33.
GEA Group AG's Days Payable for the three months ended in Sep. 2021 was 75.74.
Therefore, GEA Group AG's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2021 was 56.87.


GEA Group AG Cash Conversion Cycle Historical Data

The historical data trend for GEA Group AG'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.

GEA Group AG 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 25.69 22.54 42.60 62.24 51.67

GEA Group AG 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 71.09 53.53 58.63 59.84 56.87

Competitive Comparison

For the Specialty Industrial Machinery subindustry, GEA Group AG'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.

   

GEA Group AG Cash Conversion Cycle Distribution

For the Industrial Products industry and Industrials sector, GEA Group AG's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where GEA Group AG's Cash Conversion Cycle falls into.



GEA Group AG 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.

GEA Group AG'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
=62.21+65.68-76.22
=51.67

GEA Group AG'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
=50.28+82.33-75.74
=56.87

* 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.


GEA Group AG  (OTCPK:GEAGF) 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.


GEA Group AG Cash Conversion Cycle Related Terms

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


GEA Group AG Business Description

GEA Group AG logo
Industry
Industrials » Industrial Products NAICS : 333999 SIC : 3559
Traded in Other Exchanges
Address
Peter-Muller-Strasse 12, Dusseldorf, DEU, 40468
GEA is an expert in food processing. It manufactures equipment for separation, fluid handling, dairy processing, and dairy farming, and designs and constructs process lines or entire plants for customers. Based in Germany, the company is a global market leader, with number-one or number-two positions in its markets. Its separators are used in hundreds of different, tailored applications. Every fourth litre of milk, third instant coffee line, third chicken nugget, and second litre of beer globally is processed using the company's specialised equipment.
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