Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Cash Conversion Cycle : 40.22 (As of Nov. 2023)

View and export this data going back to 1986. Start your Free Trial

What is Rocky Mountain Chocolate Factory Cash Conversion Cycle?

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

Rocky Mountain Chocolate Factory's Days Sales Outstanding for the three months ended in Nov. 2023 was 31.52.
Rocky Mountain Chocolate Factory's Days Inventory for the three months ended in Nov. 2023 was 49.64.
Rocky Mountain Chocolate Factory's Days Payable for the three months ended in Nov. 2023 was 40.94.
Therefore, Rocky Mountain Chocolate Factory's Cash Conversion Cycle (CCC) for the three months ended in Nov. 2023 was 40.22.

Rocky Mountain Chocolate Factory Cash Conversion Cycle Historical Data

The historical data trend for Rocky Mountain Chocolate Factory'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.

Rocky Mountain Chocolate Factory Cash Conversion Cycle Chart

Rocky Mountain Chocolate Factory Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Cash Conversion Cycle

Get a 7-Day Free Trial

94.76

90.42

96.05

73.73

58.59

Rocky Mountain Chocolate Factory Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Cash Conversion Cycle	Get a 7-Day Free Trial															65.74	57.42	45.70	39.77	40.22

Competitive Comparison of Rocky Mountain Chocolate Factory's Cash Conversion Cycle

For the Confectioners subindustry, Rocky Mountain Chocolate Factory'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.

Rocky Mountain Chocolate Factory's Cash Conversion Cycle Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rocky Mountain Chocolate Factory's Cash Conversion Cycle falls into.

Rocky Mountain Chocolate Factory 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.

Rocky Mountain Chocolate Factory's Cash Conversion Cycle for the fiscal year that ended in Feb. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	23.76	+	65.02	-	30.19
	=	58.59

Rocky Mountain Chocolate Factory's Cash Conversion Cycle for the quarter that ended in Nov. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	31.52	+	49.64	-	40.94
	=	40.22

Rocky Mountain Chocolate Factory (NAS:RMCF) 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.

Rocky Mountain Chocolate Factory Cash Conversion Cycle Related Terms

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

Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Rocky Mountain Chocolate Factory Inc (NAS:RMCF) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

RMFA:Germany

Address

265 Turner Drive, Durango, CO, USA, 81303

Website

https://www.rmcf.com

Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles. Geographically, the company and its subsidiaries have stores in Canada, South Korea, Panama, the Philippines, Qatar, and other countries.

Executives

Robert J Sarlls	director, officer: Chief Executive Officer	1703 N. RANDALL ROAD, ELGIN IL 60123-7820
Global Value Investment Corp.	10 percent owner	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Geygan Jeffrey Richart Geygan	director	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Brett P Seabert	director	265 TURNER DRIVE, DURANGO CO 81303
A Allen Arroyo	officer: CFO	C/O ROCKY MOUNTAIN CHOCOLATE FACTORY, 265 TURNER DRIVE, DURANGO CO 81303
Gvp 2021-a, Llc	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Gvp 2021-a, L.p.	other: GVIC-Controlled Entity	1433 N WATER STREET, SUITE 400, MILWAUKEE WI 53202
Kathleen Geygan	other: Director of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Stacy Wilke	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
James Geygan	other: Officer of GVIC	1433 N WATER STREET, SUITE 549, MILWAUKEE WI 53202
Mark O Riegel	director	265 TURNER DRIVE, DURANGO CO 81303
Andrew Berger	other: See Explanation of Responses	84 ELM STREET, WESTFIELD NJ 07090
Richard Degnan	other: See footnote 1	2101 FREDRICK DOUGLAS BLVD, NEW YORK NY 10026
Suchit Majmudar	other: See footnote 1	1200 SOUTH GARFIELD STREET, DENVER CO 80210
Mary Bradley	other: See footnote 1	103 ST ANDREWS PLACE, NEWTOWN PA 18940