CHS's Days Sales Outstanding for the
three
months ended in Feb. 2019 was 22.23.
CHS's Days Inventory for the
three
months ended in Feb. 2019 was 50.77.
CHS's Days Payable for the
three
months ended in Feb. 2019 was 28.87.
Therefore, CHS's Cash Conversion Cycle (CCC) for the
three
months ended in Feb. 2019 was 44.13.
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.
CHS Cash Conversion Cycle Related Terms
CHS Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for CHS'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.
CHSCN.PFD vs RSSFF, NWGFF, TURV: Cash Conversion Cycle Comparison
For the Farm Products subindustry, CHS'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.
CHS Cash Conversion Cycle vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CHS's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where CHS'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.
CHS's Cash Conversion Cycle for the fiscal year that ended in Aug. 2018 is calculated as
* 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.
CHS (CHSCN.PFD) has a Cash Conversion Cycle of 44.13 as of Feb. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CHS and its competitors.
Is CHS's Cash Conversion Cycle too high?
CHS's current Cash Conversion Cycle is 44.13. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.52. CHS's value of 44.13 is 41.6% below this industry median.
How does CHS's Cash Conversion Cycle compare to RSSFF and NWGFF?
CHS's Cash Conversion Cycle of 44.13 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.52. CHS's value of 44.13 is 41.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Consumer Packaged Goods company?
The median Cash Conversion Cycle among Consumer Packaged Goods companies is 75.52, based on 1,946 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. CHS's current Cash Conversion Cycle of 44.13 is 41.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CHS and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CHS's current Cash Conversion Cycle is 44.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CHS stock overvalued right now?
CHS (CHSCN.PFD) has a current Cash Conversion Cycle of 44.13. The current Cash Conversion Cycle is 44.13 and 41.6% below the Consumer Packaged Goods industry median of 75.52. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For CHS (CHSCN.PFD), the current Cash Conversion Cycle is 44.13 as of Feb. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
CHS Inc is an integrated agricultural enterprise, that provides grain, food, and energy resources to businesses and consumers. Its Energy segment produces and provides wholesale distribution of petroleum products and transportation of those products. Its Ag segment, which is the key revenue driver, purchases and processes or resells grains and oilseeds; serves as a wholesaler and retailer of crop inputs; produces and markets ethanol. Its Nitrogen Production segment consists of equity method investment in CF Nitrogen, which entitles the purchase of up to a specified quantity of granular urea and UAN annually from CF Nitrogen. Geographically, the company derives maximum revenue from North America and the rest from South America, Asia Pacific, Europe, Middle East, and Africa (EMEA).
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