TMM Real Estate Development (FRA:TR61) 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.
TMM Real Estate Development Cash Conversion Cycle Related Terms
TMM Real Estate Development Cash Conversion Cycle Historical Data
* 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.
TMM Real Estate Development Cash Conversion Cycle Chart
TMM Real Estate Development Cash Conversion Cycle Competitor Comparison
For the Real Estate - Diversified subindustry, TMM Real Estate Development'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.
TMM Real Estate Development Cash Conversion Cycle vs Real Estate Industry
For the Real Estate industry and Real Estate sector, TMM Real Estate Development's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where TMM Real Estate Development's Cash Conversion Cycle falls into.
TMM Real Estate Development 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.
TMM Real Estate Development's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
TMM Real Estate Development (FRA:TR61) has a Cash Conversion Cycle of 105.53 as of Dec. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on TMM Real Estate Development and its competitors.
Is TMM Real Estate Development's Cash Conversion Cycle too high?
TMM Real Estate Development's current Cash Conversion Cycle is 105.53. The Real Estate industry median Cash Conversion Cycle is 319.08. TMM Real Estate Development's value of 105.53 is 66.9% below this industry median. Overall, TMM Real Estate Development has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does TMM Real Estate Development's Cash Conversion Cycle compare to competitors?
TMM Real Estate Development's Cash Conversion Cycle of 105.53 can be compared against companies in the Real Estate industry. The industry median Cash Conversion Cycle is 319.08. TMM Real Estate Development's value of 105.53 is 66.9% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Real Estate company?
The median Cash Conversion Cycle among Real Estate companies is 319.08, based on 1,731 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TMM Real Estate Development's current Cash Conversion Cycle of 105.53 is 66.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on TMM Real Estate Development and its competitors. For the Real Estate industry, the median Cash Conversion Cycle is 319.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TMM Real Estate Development's current Cash Conversion Cycle is 105.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TMM Real Estate Development stock overvalued right now?
TMM Real Estate Development (FRA:TR61) has a current Cash Conversion Cycle of 105.53. The current Cash Conversion Cycle is 105.53 and 66.9% below the Real Estate industry median of 319.08. TMM Real Estate Development's overall GF Score™ is 39/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For TMM Real Estate Development (FRA:TR61), the current Cash Conversion Cycle is 105.53 as of Dec. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
TMM Real Estate Development PLC operates as a real estate development and construction company and develops the construction of residential complexes on a turnkey basis, which covers all complex construction and fine finishing works as well as post-construction utility services for the completed projects. It operates in the following segments: Investment Property; Property Development & Construction; Utility and Management Services; and Air Mobility Solutions. The Investment Property segment leases residential and commercial property owned by the group. The Property Development & Construction segment builds and sells residential and commercial property and renders construction services. The Air Mobility Solutions segment earns the majority of revenue.
39GF Score
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