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Aeries Technology (Aeries Technology) Cash Conversion Cycle : 37.51 (As of Dec. 2023)


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What is Aeries Technology Cash Conversion Cycle?

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

Aeries Technology's Days Sales Outstanding for the three months ended in Dec. 2023 was 87.65.
Aeries Technology's Days Inventory for the three months ended in Dec. 2023 was 0.
Aeries Technology's Days Payable for the three months ended in Dec. 2023 was 50.14.
Therefore, Aeries Technology's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 37.51.

Aeries Technology Cash Conversion Cycle Historical Data

The historical data trend for Aeries Technology'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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Aeries Technology Cash Conversion Cycle Chart

Aeries Technology Annual Data
Trend Mar22 Mar23
Cash Conversion Cycle
61.77 58.71

Aeries Technology Quarterly Data
Mar22 Jun22 Dec22 Mar23 Jun23 Sep23 Dec23
Cash Conversion Cycle Get a 7-Day Free Trial - 60.23 58.85 - 37.51

Competitive Comparison of Aeries Technology's Cash Conversion Cycle

For the Consulting Services subindustry, Aeries Technology'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.

Aeries Technology's Cash Conversion Cycle Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Aeries Technology's Cash Conversion Cycle distribution charts can be found below:

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


Aeries Technology 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.

Aeries Technology's Cash Conversion Cycle for the fiscal year that ended in Mar. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=74.05+0-15.34
=58.71

Aeries Technology'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
=87.65+0-50.14
=37.51

* 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.

Aeries Technology  (NAS:AERTW) 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.

Aeries Technology Cash Conversion Cycle Related Terms

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Aeries Technology (Aeries Technology) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Aeries Technology Inc (NAS:AERTW) » Definitions » Cash Conversion Cycle
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Traded in Other Exchanges
AERT:USA
Address
Twin Towers Lane, Paville House, 5th Floor, Prabhadevi, Mumbai, MH, IND, 400025
Website
https://www.aeriestechnology.com
Aeries Technology Inc is a global professional and management services partner offering a range of management consultancy services for private equity sponsors and their portfolio companies with engagement models that are designed to provide a mix of deep vertical specialty, functional expertise, and digital systems and solutions to scale, optimize and transform a client's business operations. It supports and drives its client's global growth by providing a range of management consultancy services involving professional advisory services and operations management services to build and manage dedicated delivery centers in appropriate locations based on customer business needs.