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Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.
Electronics Mart India's Days Sales Outstanding for the
three
months ended in Sep. 2024 was 8.16.
Electronics Mart India's Days Inventory for the
three
months ended in Sep. 2024 was 74.89.
Electronics Mart India's Days Payable for the
three
months ended in Sep. 2024 was 4.25.
Therefore, Electronics Mart India's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2024 was 78.80.
The historical data trend for Electronics Mart India'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.
Electronics Mart India Annual Data | |||||||||||
Trend | Mar20 | Mar21 | Mar22 | Mar23 | Mar24 | ||||||
Cash Conversion Cycle | 63.74 | 68.15 | 60.18 | 60.72 | 66.79 |
Electronics Mart India Quarterly Data | ||||||||||||||
Mar20 | Mar21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Cash Conversion Cycle | Get a 7-Day Free Trial | 67.65 | 48.86 | 81.05 | 58.66 | 78.80 |
For the Specialty Retail subindustry, Electronics Mart India'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.
For the Retail - Cyclical industry and Consumer Cyclical sector, Electronics Mart India's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Electronics Mart India's Cash Conversion Cycle falls into.
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.
Electronics Mart India's Cash Conversion Cycle for the fiscal year that ended in Mar. 2024 is calculated as
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 9.87 | + | 59.22 | - | 2.3 | |
= | 66.79 |
Electronics Mart India's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 8.16 | + | 74.89 | - | 4.25 | |
= | 78.80 |
* 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.
Electronics Mart India (BOM:543626) 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.
Thank you for viewing the detailed overview of Electronics Mart India's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.
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