GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Link Administration Holdings Ltd (ASX:LNK) » Definitions » Cash Conversion Cycle

Link Administration Holdings (ASX:LNK) Cash Conversion Cycle : 54.87 (As of Dec. 2023)


View and export this data going back to 2015. Start your Free Trial

What is Link Administration Holdings Cash Conversion Cycle?

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

Link Administration Holdings's Days Sales Outstanding for the six months ended in Dec. 2023 was 54.87.
Link Administration Holdings's Days Inventory for the six months ended in Dec. 2023 was .
Link Administration Holdings's Days Payable for the six months ended in Dec. 2023 was .
Therefore, Link Administration Holdings's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 54.87.


Link Administration Holdings Cash Conversion Cycle Historical Data

The historical data trend for Link Administration 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.

* Premium members only.

Link Administration Holdings Cash Conversion Cycle Chart

Link Administration Holdings Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cash Conversion Cycle
Get a 7-Day Free Trial 51.14 50.22 50.24 48.24 56.90

Link Administration Holdings Semi-Annual Data
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 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 67.16 69.77 64.09 99.42 54.87

Competitive Comparison of Link Administration Holdings's Cash Conversion Cycle

For the Capital Markets subindustry, Link Administration 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.


Link Administration Holdings's Cash Conversion Cycle Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Link Administration Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Link Administration Holdings's Cash Conversion Cycle falls into.



Link Administration 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.

Link Administration Holdings's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=56.9+-
=56.90

Link Administration 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
=54.87+-
=54.87

* 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.


Link Administration Holdings  (ASX:LNK) 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.


Link Administration Holdings Cash Conversion Cycle Related Terms

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


Link Administration Holdings (ASX:LNK) Business Description

Traded in Other Exchanges
Address
680 George Street, Level 12, Sydney, NSW, AUS, 2000
Link derives its revenue primarily from providing administration services to the financial services sector in Australia, and the share registry and investment fund sectors in the U.K. The company is the largest provider of superannuation administration services and the second-largest provider of share registry services in Australia. Link's clients are usually contracted for between two and five years. The customers are relatively sticky, resulting in a high recurring revenue. The capital-light business model means cash flow is relatively strong.

Link Administration Holdings (ASX:LNK) Headlines

No Headlines