GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Davis Commodities Ltd (NAS:DTCK) » Definitions » Cash Conversion Cycle

DTCK (Davis Commodities) Cash Conversion Cycle : 1.77 (As of Jun. 2024)


View and export this data going back to 2023. Start your Free Trial

What is Davis Commodities Cash Conversion Cycle?

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

Davis Commodities's Days Sales Outstanding for the six months ended in Jun. 2024 was 40.06.
Davis Commodities's Days Inventory for the six months ended in Jun. 2024 was 0.98.
Davis Commodities's Days Payable for the six months ended in Jun. 2024 was 39.27.
Therefore, Davis Commodities's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2024 was 1.77.

Davis Commodities Cash Conversion Cycle Historical Data

The historical data trend for Davis Commodities'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.

Davis Commodities Cash Conversion Cycle Chart

Davis Commodities Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
-4.04 -4.67 -1.63 2.47

Davis Commodities Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Cash Conversion Cycle Get a 7-Day Free Trial -5.95 -1.25 0.72 0.48 1.77

Competitive Comparison of Davis Commodities's Cash Conversion Cycle

For the Farm Products subindustry, Davis Commodities'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.

Davis Commodities's Cash Conversion Cycle Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Davis Commodities's Cash Conversion Cycle distribution charts can be found below:

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


Davis Commodities 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.

Davis Commodities's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=19.06+2.7-19.29
=2.47

Davis Commodities's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=40.06+0.98-39.27
=1.77

* 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.

Davis Commodities  (NAS:DTCK) 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.

Davis Commodities Cash Conversion Cycle Related Terms

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

Davis Commodities Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Davis Commodities Ltd (NAS:DTCK) » Definitions » Cash Conversion Cycle
Comparable Companies
SDOT SANW LOCL PGFF EDBL SISI SHMP AGRI AQB AAGR SZSE:002714 ADM TSN SZSE:300498 BG OSL:MOWI OSL:SALM SZSE:000876 BKK:CPF CALM
Traded in Other Exchanges
N/A
Address
10 Bukit Batok Crescent, No. 10-01, The Spire, Singapore, SGP, 658079
Website
https://www.daviscl.com
Davis Commodities Ltd is an agricultural commodity trading company based in Singapore which specializes in trading of three main categories of agricultural commodities namely sugar, rice, and oil and fat products. It distributes agricultural commodities to various markets, including Asia, Africa and the Middle East. The company also provides customers of commodity offerings with complementary, ancillary services such as warehouse handling and storage and logistics services. The Company operates across four main segments: the sale of sugar, rice, oil and fat products, and others. Among these, the sale of sugar stands out as the primary revenue generator, contributing significantly to the company's overall income.