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Kinder Morgan Energy Partners LP (FRA:KM7) Cash Conversion Cycle : -20.13 (As of Sep. 2014)


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What is Kinder Morgan Energy Partners LP Cash Conversion Cycle?

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

Kinder Morgan Energy Partners LP's Days Sales Outstanding for the three months ended in Sep. 2014 was 33.17.
Kinder Morgan Energy Partners LP's Days Inventory for the three months ended in Sep. 2014 was 23.04.
Kinder Morgan Energy Partners LP's Days Payable for the three months ended in Sep. 2014 was 76.34.
Therefore, Kinder Morgan Energy Partners LP's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2014 was -20.13.


Kinder Morgan Energy Partners LP Cash Conversion Cycle Historical Data

The historical data trend for Kinder Morgan Energy Partners LP'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.

Kinder Morgan Energy Partners LP Cash Conversion Cycle Chart

Kinder Morgan Energy Partners LP Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -32.31 -10.09 -16.67 -33.14 -26.76

Kinder Morgan Energy Partners LP Quarterly Data
Sep09 Dec09 Mar10 Jun10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 -19.57 -28.02 -24.54 -20.80 -20.13

Competitive Comparison of Kinder Morgan Energy Partners LP's Cash Conversion Cycle

For the Oil & Gas Midstream subindustry, Kinder Morgan Energy Partners LP'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.


Kinder Morgan Energy Partners LP's Cash Conversion Cycle Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Kinder Morgan Energy Partners LP's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Kinder Morgan Energy Partners LP's Cash Conversion Cycle falls into.



Kinder Morgan Energy Partners LP 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.

Kinder Morgan Energy Partners LP'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
=38.91+24.46-90.13
=-26.76

Kinder Morgan Energy Partners LP's Cash Conversion Cycle for the quarter that ended in Sep. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=33.17+23.04-76.34
=-20.13

* 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.


Kinder Morgan Energy Partners LP  (FRA:KM7) 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.


Kinder Morgan Energy Partners LP Cash Conversion Cycle Related Terms

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Kinder Morgan Energy Partners LP (FRA:KM7) Business Description

Traded in Other Exchanges
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Address
Kinder Morgan Energy Partners LP is a Delaware limited partnership formed in August 1992. The Company is engaged in pipeline transportation and energy storage company in North America. They own an interest in or operate approximately 52,000 miles of pipelines and 180 terminals. Its pipelines transport natural gas, refined petroleum products, crude oil, condensate, CO2 and other products, and its terminals store petroleum products, ethanol and chemicals, and handle such products as coal, petroleum coke and steel. They are also the producer and transporter of CO2, for enhanced oil recovery projects in North America. Its operations are conducted through our five operating limited partnerships and their subsidiaries and are grouped into five reportable business segments: Natural Gas Pipelines—consists of approximately 40,000 miles of natural gas transmission pipelines and gathering lines, plus natural gas storage, treating and processing facilities, through which natural gas is gathered, transported, stored, treated, processed and sold; O2—which produces, markets and transports, through approximately 1,500 miles of pipelines, CO2 to oil fields that use CO2 to increase production of oil; owns interests in and/or operate four primary oil fields in West Texas; and owns and operates a 450-mile crude oil pipeline system in West Texas; Products Pipelines—consists of approximately 9,000 miles of refined petroleum products and crude oil and condensate pipelines that deliver refined petroleum products (gasoline, diesel fuel and jet fuel), NGL, crude oil, condensate and bio-fuels to various markets; plus approximately 62 associated product terminals and petroleum pipeline transmix processing facilities serving customers across the U.S.; Terminals—consists of approximately 122 owned or operated liquids and bulk terminal facilities and approximately 10 rail transloading and materials handling facilities located throughout the U.S. and portions of Canada, which together transload, store and deliver a wide variety of bulk, petroleum, petrochemical and other liquids products for customers across the U.S. and Canada; and Kinder Morgan Canada—transports crude oil and refined petroleum products through approximately 800 miles of pipelines from Alberta, Canada to marketing terminals and refineries in British Columbia and the state of Washington; plus five associated product terminal facilities. The Company's business operations are subject to federal, state, provincial and local laws and regulations relating to environmental protection, pollution and human health and safety in the U.S. and Canada.

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