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China Gengsheng Minerals (FRA:CGS) Cash Conversion Cycle : 161.55 (As of Dec. 2013)


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What is China Gengsheng Minerals Cash Conversion Cycle?

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

China Gengsheng Minerals's Days Sales Outstanding for the three months ended in Dec. 2013 was 217.62.
China Gengsheng Minerals's Days Inventory for the three months ended in Dec. 2013 was 64.97.
China Gengsheng Minerals's Days Payable for the three months ended in Dec. 2013 was 121.04.
Therefore, China Gengsheng Minerals's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2013 was 161.55.


China Gengsheng Minerals Cash Conversion Cycle Historical Data

The historical data trend for China Gengsheng Minerals'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.

China Gengsheng Minerals Cash Conversion Cycle Chart

China Gengsheng Minerals Annual Data
Trend Sep06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cash Conversion Cycle
Get a 7-Day Free Trial 221.54 220.99 217.70 222.61 232.17

China Gengsheng Minerals 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 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 256.02 352.11 203.97 219.12 161.55

Competitive Comparison of China Gengsheng Minerals's Cash Conversion Cycle

For the Building Materials subindustry, China Gengsheng Minerals'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.


China Gengsheng Minerals's Cash Conversion Cycle Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, China Gengsheng Minerals's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where China Gengsheng Minerals's Cash Conversion Cycle falls into.



China Gengsheng Minerals 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.

China Gengsheng Minerals'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
=310.4+91.87-170.1
=232.17

China Gengsheng Minerals'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
=217.62+64.97-121.04
=161.55

* 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.


China Gengsheng Minerals  (FRA:CGS) 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.


China Gengsheng Minerals Cash Conversion Cycle Related Terms

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China Gengsheng Minerals (FRA:CGS) Business Description

Traded in Other Exchanges
N/A
Address
No. 88 Gengsheng Road, Dayugou Town, Gongyi, Henan, CHN, 451271
China Gengsheng Minerals Inc is a holding company. It operates in the materials technology industry through its subsidiaries in China. It develops, manufactures and sells a broad range of mineral-based products. Its products include refractory products, industrial ceramics, fracture proppants and fine precision abrasives and corundum materials. It sells its products to iron, steel, oil, glass, cement, aluminum, chemical and solar industries. The company has Refractories, Industrial ceramic, Fracture proppant, Fire precision abrasives segments. It derives the majority of its revenues from Refractories segment.

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