Rolls-Royce Holdings (Rolls-Royce Holdings) Cash Conversion Cycle : 140.45 (As of Dec. 2023)

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What is Rolls-Royce Holdings Cash Conversion Cycle?

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

Rolls-Royce Holdings's Days Sales Outstanding for the six months ended in Dec. 2023 was 54.5.
Rolls-Royce Holdings's Days Inventory for the six months ended in Dec. 2023 was 129.89.
Rolls-Royce Holdings's Days Payable for the six months ended in Dec. 2023 was 43.94.
Therefore, Rolls-Royce Holdings's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 140.45.

Rolls-Royce Holdings Cash Conversion Cycle Historical Data

The historical data trend for Rolls-Royce Holdings'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.

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Rolls-Royce Holdings Cash Conversion Cycle Chart

Rolls-Royce Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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101.61

141.22

164.75

159.70

142.90

Rolls-Royce Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															165.71	184.67	139.96	156.70	140.45

Competitive Comparison of Rolls-Royce Holdings's Cash Conversion Cycle

For the Aerospace & Defense subindustry, Rolls-Royce Holdings'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.

Rolls-Royce Holdings's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rolls-Royce Holdings's Cash Conversion Cycle falls into.

Rolls-Royce Holdings 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.

Rolls-Royce Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	56.36	+	133.03	-	46.49
	=	142.90

Rolls-Royce Holdings'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
	=	54.5	+	129.89	-	43.94
	=	140.45

Rolls-Royce Holdings (OTCPK:RYCEF) 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.

Rolls-Royce Holdings Cash Conversion Cycle Related Terms

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Rolls-Royce Holdings (Rolls-Royce Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Rolls-Royce Holdings PLC (OTCPK:RYCEF) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

RYCEY:USA RLLCF.PFD:USA RRl:UK RR.:UK RRU:Germany

Address

90 York Way, Kings Place, London, GBR, N1 9FX

Website

https://www.rolls-royce.com

Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.