Beam (FRA:BJM) Cash Conversion Cycle : 530.22 (As of Dec. 2013)

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What is Beam Cash Conversion Cycle?

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

Beam's Days Sales Outstanding for the three months ended in Dec. 2013 was 53.48.
Beam's Days Inventory for the three months ended in Dec. 2013 was 528.11.
Beam's Days Payable for the three months ended in Dec. 2013 was 51.37.
Therefore, Beam's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2013 was 530.22.

Beam Cash Conversion Cycle Historical Data

The historical data trend for Beam'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.

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Beam Cash Conversion Cycle Chart

Beam Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Cash Conversion Cycle

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220.49

786.21

649.54

580.89

616.93

Beam Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Cash Conversion Cycle	Get a 7-Day Free Trial															526.70	684.84	621.71	668.60	530.22

Competitive Comparison of Beam's Cash Conversion Cycle

For the Beverages - Wineries & Distilleries subindustry, Beam'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.

Beam's Cash Conversion Cycle Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Beam's Cash Conversion Cycle distribution charts can be found below:

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

Beam 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.

Beam's Cash Conversion Cycle for the fiscal year that ended in Dec. 2013 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	59.67	+	629.51	-	72.25
	=	616.93

Beam's Cash Conversion Cycle for the quarter that ended in Dec. 2013 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	53.48	+	528.11	-	51.37
	=	530.22

Beam (FRA:BJM) 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.

Beam Cash Conversion Cycle Related Terms

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Beam (FRA:BJM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Beam Inc (FRA:BJM) » Definitions » Cash Conversion Cycle

Traded in Other Exchanges

N/A

Address

Website

http://www.beamglobal.com

Beam Inc., is incorporated under the laws of Delaware in 1985. On May 30, 1997, the Company's name was changed from American Brands, Inc. to Fortune Brands, Inc. Following the spin-off on October 3, 2011, the Company became a standalone Spirits Company under the name Beam Inc. It is a premium spirits company that makes and sells branded distilled spirits products in major markets. The Company's three reportable segments are the geographic regions of North America, EMEA and APSA. Each segment is engaged in the manufacture and sale of distilled spirits products. Its principal products include bourbon whiskey, Scotch whisky, Canadian whisky, tequila, cognac, rum, cordials, and ready-to-drink pre-mixed cocktails. The Company's portfolio consists of brands it identifies as Power Brands, Rising Stars, Local Jewels and Value Creators. The Power Brands are the core brand equities, with its reach in premium categories and large annual sales volume. Rising Stars are smaller premium brands in priority markets. Brands identified as Local Jewels act as Power Brands in local markets. Value Creators include a variety of brands competing across multiple categories. The principal markets for its spirits products are the United States, Australia, Germany, Spain, the United Kingdom, and Canada, and continues to invest in emerging markets such as India, Brazil, Mexico, Russia, Central Europe, Asia, and other geographies. The Company operates its business on the basis of geographical regions, consisting of North America, Europe/Middle East/Africa, and Asia-Pacific/South America. Its peak season for business is the fourth calendar quarter due to holiday buying. Raw materials for the production, storage and aging of distilled products are corn and other grains for whiskies and other spirits, agave for tequila, molasses for rum, grapes for cognac and fortified wines, new or used oak barrels, and plastic and glass for bottles. These materials are generally readily available from a number of sources, except that new oak barrels are available from only a few sources. The Company uses different business models to market and distribute its products in different regions of the world. In the U.S., it sells products either to wholesale distributors for resale to retail outlets or, in those states that control alcohol sales, to state governments who then sell them to retail customers and consumers. It competes on the basis of product quality, brand image, innovation, price, and service in response to consumer preferences. The production, storage, transportation, distribution and sale of its products are subject to regulation by federal, state, local, and foreign authorities.

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