GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Alchemist Ltd (BOM:526707) » Definitions » Cash Conversion Cycle

Alchemist (BOM:526707) Cash Conversion Cycle : -3.40 (As of Sep. 2020)


View and export this data going back to 2000. Start your Free Trial

What is Alchemist Cash Conversion Cycle?

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

Alchemist's Days Sales Outstanding for the three months ended in Sep. 2020 was 564.37.
Alchemist's Days Inventory for the three months ended in Sep. 2020 was 40.87.
Alchemist's Days Payable for the three months ended in Sep. 2020 was 608.64.
Therefore, Alchemist's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2020 was -3.40.


Alchemist Cash Conversion Cycle Historical Data

The historical data trend for Alchemist'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.

Alchemist Cash Conversion Cycle Chart

Alchemist Annual Data
Trend Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1,021.41 4,854.28 3,997.03 3,748.09 5,438.03

Alchemist Quarterly Data
Dec11 Mar12 Jun12 Dec12 Mar13 Jun13 Mar14 Mar15 Mar16 Mar17 Mar18 Jun18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20
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 Premium Member Only Premium Member Only Premium Member Only - - 16,849.00 -29,844.53 -3.40

Competitive Comparison of Alchemist's Cash Conversion Cycle

For the Conglomerates subindustry, Alchemist'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.


Alchemist's Cash Conversion Cycle Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Alchemist's Cash Conversion Cycle distribution charts can be found below:

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



Alchemist 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.

Alchemist's Cash Conversion Cycle for the fiscal year that ended in Mar. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=10185.61+28.43-4776.01
=5,438.03

Alchemist's Cash Conversion Cycle for the quarter that ended in Sep. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=564.37+40.87-608.64
=-3.40

* 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.


Alchemist  (BOM:526707) 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.


Alchemist Cash Conversion Cycle Related Terms

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


Alchemist (BOM:526707) Business Description

Traded in Other Exchanges
N/A
Address
Alchemist House, Building No.23, Nehru Place, New Delhi, IND, 110019
Alchemist Ltd is a diversified Conglomerate company. It is engaged in the business of Agriculture and allied activities comprising of floriculture and manufacturing of wire mesh for poultry industry and trading of chemicals and pharmaceutical formulations. It operates through two segments: Agri Business and Pharma, Chemical and Minerals. The company's operations are spread across North America, Europe, Asia Pacific and Rest of the World regions.

Alchemist (BOM:526707) Headlines

No Headlines