GURUFOCUS.COM » STOCK LIST » USA » NYSE » Walmart Inc (NYSE:WMT) » Definitions » Cash Conversion Cycle
Switch to:

Walmart Cash Conversion Cycle

: 9.22 (As of Apr. 2022)
View and export this data going back to 1970. Start your Free Trial

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

Walmart's Days Sales Outstanding for the three months ended in Apr. 2022 was 5.14.
Walmart's Days Inventory for the three months ended in Apr. 2022 was 50.28.
Walmart's Days Payable for the three months ended in Apr. 2022 was 46.2.
Therefore, Walmart's Cash Conversion Cycle (CCC) for the three months ended in Apr. 2022 was 9.22.


Walmart Cash Conversion Cycle Historical Data

The historical data trend for Walmart'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.

Walmart Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Cash Conversion Cycle
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.84 1.81 1.91 1.26 3.46

Walmart Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 1.43 2.28 3.71 5.28 9.22

Competitive Comparison

For the Discount Stores subindustry, Walmart'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.

   

Walmart Cash Conversion Cycle Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Walmart's Cash Conversion Cycle distribution charts can be found below:

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



Walmart 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.

Walmart's Cash Conversion Cycle for the fiscal year that ended in Jan. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=4.71+43.16-44.41
=3.46

Walmart's Cash Conversion Cycle for the quarter that ended in Apr. 2022 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=5.14+50.28-46.2
=9.22

* 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.


Walmart  (NYSE:WMT) 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.


Walmart Cash Conversion Cycle Related Terms

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


Walmart Business Description

Walmart logo
Address
702 Southwest 8th Street, Bentonville, AR, USA, 72716
America's largest retailer by sales, Walmart operated over 11,400 stores under 54 banners at the end of fiscal 2021, selling a variety of general merchandise and grocery items. Its home market accounted for 78% of sales in fiscal 2021, with Mexico and Central America (6%) and Canada (4%) its largest external markets. In the United States, around 56% of sales come from grocery, 32% from general merchandise, and 10% from health and wellness items. The company operates several e-commerce properties apart from its eponymous site, including Flipkart and shoes.com (it also owns a roughly 10% stake in Chinese online retailer JD.com). Combined, e-commerce accounted for about 12% of fiscal 2021 sales.
Executives
Rainey John D officer: Executive Vice President C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Stephenson Randall L director 208 S. AKARD ST. DALLAS TX 75202
Morris Donna officer: Executive Vice President 345 PARK AVENUE SAN JOSE CA 95110
Mclay Kathryn J. officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Kumar Suresh officer: Chief Technology Officer 860 W. CALIFORNIA AVE. SUNNYVALE CA 94086
Conde Cesar director ONE OWENS CORNING PARKWAY TOLEDO OH 43659
Easterbrook Stephen director MCDONALD'S CORPORATION 110 NORTH CARPENTER STREET CHICAGO IL 60607
Brand Rachel L officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Friar Sarah director C/O NEXTDOOR HOLDINGS, INC. 420 TAYLOR STREET SAN FRANCISCO CA 94102
Mckenna Judith J officer: Executive Vice President 702 S.W. 8TH STREET BENTONVILLE AR 72716
Harris Carla A director 702 SW 8TH STREET BENTONVILLE AR 72716
Furner John R. officer: Executive Vice President 702 SW 8TH STREET BENTONVILLE AR 72716
Chojnowski David officer: Senior Vice President 5505 BLUE LAGOON DRIVE MIAMI FL 33126
Lore Marc E. officer: Executive Vice President 443 GREENWICH STREET, PHA NEW YORK NY 10013
Walton Steuart L director 702 SW 8TH STREET BENTONVILLE AR 72716

Walmart Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)