DP World (DFM:DPW) Cash Conversion Cycle: -29.37 (As of Dec. 2019)


What is DP World Cash Conversion Cycle?

DP World DFM:DPW Cash Conversion Cycle is -29.37 as of Dec. 2019. The stock has 9 warning signs investors should review.

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

DP World's Days Sales Outstanding for the six months ended in Dec. 2019 was 59.37.
DP World's Days Inventory for the six months ended in Dec. 2019 was 9.76.
DP World's Days Payable for the six months ended in Dec. 2019 was 98.5.
Therefore, DP World's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2019 was -29.37.

DP World  (DFM:DPW) 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.

DP World Cash Conversion Cycle Related Terms

DP World Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for DP World'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.

DP World Cash Conversion Cycle Chart

DP World Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.29 19.17 22.80 21.86 22.48

DP World Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
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 -60.65 -80.23 -60.83 -57.21 -29.37

DFM:DPW vs KEX: Cash Conversion Cycle Comparison

For the Marine Shipping subindustry, DP World'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.

DP World Cash Conversion Cycle vs Transportation Industry

For the Transportation industry and Industrials sector, DP World's Cash Conversion Cycle distribution charts can be found below:

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


DP World 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.

DP World's Cash Conversion Cycle for the fiscal year that ended in Dec. 2019 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=42.46+10.7-30.68
=22.48

DP World's Cash Conversion Cycle for the quarter that ended in Dec. 2019 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=59.37+9.76-98.5
=-29.37

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of -29.37 mean?
DP World (DFM:DPW) has a Cash Conversion Cycle of -29.37 as of Dec. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on DP World and its competitors.
Is DP World's Cash Conversion Cycle too high?
DP World's current Cash Conversion Cycle is -29.37.
How does DP World's Cash Conversion Cycle compare to KEX?
DP World's Cash Conversion Cycle of -29.37 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,008 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. 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 DP World and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DP World's current Cash Conversion Cycle is -29.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DP World stock overvalued right now?
DP World (DFM:DPW) has a current Cash Conversion Cycle of -29.37. The current Cash Conversion Cycle is -29.37. 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 DP World (DFM:DPW), the current Cash Conversion Cycle is -29.37 as of Dec. 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.

DP World Business Description

Address Office 27, Level 3, Gate Village Building 4, PO Box 17000, Dubai International Financial Centre, Dubai, ARE
DP World PLC is a transportation and logistics company, domiciled in the United Arab Emirates. The company develops and manages international marine and inland terminal facilities, operates industrial parks and economic zones, and provides logistics services. DP World organises itself into three geographical segments: Asia-Pacific and the Indian subcontinent; Australia and Americas; and the Middle East, Europe, and Africa. The company derives the vast majority of revenue from the Middle East, Europe, and Africa.