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Hutchison Whampoa (FRA:HUWH) Cash Conversion Cycle : 19.30 (As of Dec. 2014)


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What is Hutchison Whampoa Cash Conversion Cycle?

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

Hutchison Whampoa's Days Sales Outstanding for the six months ended in Dec. 2014 was 22.76.
Hutchison Whampoa's Days Inventory for the six months ended in Dec. 2014 was 60.2.
Hutchison Whampoa's Days Payable for the six months ended in Dec. 2014 was 63.66.
Therefore, Hutchison Whampoa's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2014 was 19.30.


Hutchison Whampoa Cash Conversion Cycle Historical Data

The historical data trend for Hutchison Whampoa'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.

Hutchison Whampoa Cash Conversion Cycle Chart

Hutchison Whampoa Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -190.37 - -83.10 24.51 18.48

Hutchison Whampoa Semi-Annual Data
Dec99 Dec04 Dec05 Dec06 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14
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 -49.05 24.68 23.64 25.40 19.30

Competitive Comparison of Hutchison Whampoa's Cash Conversion Cycle

For the Department Stores subindustry, Hutchison Whampoa'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.


Hutchison Whampoa's Cash Conversion Cycle Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Hutchison Whampoa's Cash Conversion Cycle distribution charts can be found below:

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



Hutchison Whampoa 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.

Hutchison Whampoa's Cash Conversion Cycle for the fiscal year that ended in Dec. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=24.73+62.8-69.05
=18.48

Hutchison Whampoa's Cash Conversion Cycle for the quarter that ended in Dec. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=22.76+60.2-63.66
=19.30

* 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.


Hutchison Whampoa  (FRA:HUWH) 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.


Hutchison Whampoa Cash Conversion Cycle Related Terms

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Hutchison Whampoa Business Description

Traded in Other Exchanges
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Address
Hutchison Whampoa Ltd is a multinational conglomerate engaged in the development, innovation and technology in various sector. The Company has six businesses segments: ports and related services, property and hotels, retail, infrastructure, energy, and telecommunications. The Company holds interests in 52 ports comprising 278 operational berths in 26 countries, including container terminals operating in five of the 10 busiest container ports in the world. It also engages in mid-stream operations, river trade, cruise terminal operations and ports related logistics services. It develops and invests in real estate projects, ranging from landmark office buildings to luxury residential properties. It holds a rental property portfolio of approximately 14.0 million square feet of office, commercial, industrial and residential premises, primarily in Hong Kong, as well as interests in a number of joint-venture developments in Mainland China and selective overseas markets. The Company has over 10,500 retail stores in 25 markets worldwide. Its retail portfolio comprises health and beauty products, supermarkets, consumer electronics and electrical appliances. The Company's infrastructure business operates mainly in Hong Kong, the United Kingdom, the Netherlands, the Mainland, Australia, New Zealand and Canada. The Company's investments in energy are principally in Canada, the United States, the Mainland, Taiwan, Greenland and Indonesia. Husky Energy Inc is a listed Canadian-based integrated energy and energy related company. The Company is an operator of mobile telecommunication and data services, and a mobile broadband technology in the world. It is also an owner and operator of fibre-optic fixed line networks in Hong Kong.

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