GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » AdvancePierre Foods Holdings Inc (FRA:1AC) » Definitions » Cash Conversion Cycle

AdvancePierre Foods Holdings (FRA:1AC) Cash Conversion Cycle : 68.13 (As of Mar. 2017)


View and export this data going back to 2016. Start your Free Trial

What is AdvancePierre Foods Holdings Cash Conversion Cycle?

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

AdvancePierre Foods Holdings's Days Sales Outstanding for the three months ended in Mar. 2017 was 19.71.
AdvancePierre Foods Holdings's Days Inventory for the three months ended in Mar. 2017 was 68.03.
AdvancePierre Foods Holdings's Days Payable for the three months ended in Mar. 2017 was 19.61.
Therefore, AdvancePierre Foods Holdings's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2017 was 68.13.


AdvancePierre Foods Holdings Cash Conversion Cycle Historical Data

The historical data trend for AdvancePierre Foods Holdings'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.

AdvancePierre Foods Holdings Cash Conversion Cycle Chart

AdvancePierre Foods Holdings Annual Data
Trend Dec13 Dec14 Dec15 Dec16
Cash Conversion Cycle
- 63.03 62.85 69.76

AdvancePierre Foods Holdings Quarterly Data
Dec13 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 70.10 70.34 66.18 64.54 68.13

Competitive Comparison of AdvancePierre Foods Holdings's Cash Conversion Cycle

For the Packaged Foods subindustry, AdvancePierre Foods Holdings'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.


AdvancePierre Foods Holdings's Cash Conversion Cycle Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where AdvancePierre Foods Holdings's Cash Conversion Cycle falls into.



AdvancePierre Foods Holdings 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.

AdvancePierre Foods Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=18.91+66.77-15.92
=69.76

AdvancePierre Foods Holdings's Cash Conversion Cycle for the quarter that ended in Mar. 2017 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=19.71+68.03-19.61
=68.13

* 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.


AdvancePierre Foods Holdings  (FRA:1AC) 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.


AdvancePierre Foods Holdings Cash Conversion Cycle Related Terms

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


AdvancePierre Foods Holdings (FRA:1AC) Business Description

Traded in Other Exchanges
N/A
Address
AdvancePierre Foods Holdings Inc was incorporated in Delaware on December 5, 2008 as Pierre Foods Holding Corporation and changed its name to AdvancePierre Foods Holdings, Inc., on March 16, 2016. The Company is a producer and distributor of value-added, ready-to-eat sandwiches, sandwich components and other entrées and snacks. It markets and distributes multiple product categories including ready-to-eat sandwiches, such as breakfast sandwiches, PB&J sandwiches and hamburgers; sandwich components, such as fully-cooked hamburger and chicken patties and Philly steaks; and other entrées and snacks, such as country fried steak, stuffed entrées, chicken tenders and cinnamon dough bites. The Company sells its value-added products to the foodservice, retail and convenience channels, as well as in the industrial channel. It operates in four segments Foodservice, Retail, Convenience and Industrial. Its Foodservice customers include national and regional distributors, who sells Company's products to end-customers including restaurant operators, schools, U.S. military and grocery deli counters. Its Retail segment serves an array of retail customers including national and regional grocery chains, major warehouse club stores, mass retailers and dollar stores. The Convenience segment represents outlet for ready-to-eat sandwiches and includes sales to vending providers. Industrial segment consists of sales to other food producers under short-term co-manufacturing agreements. Its competitors include American Food Group, CTI, Allied Specialty Foods, Devault Foods, Lopez Foods and JTM Food Group.

AdvancePierre Foods Holdings (FRA:1AC) Headlines

No Headlines