GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Fletcher Building Ltd (OTCPK:FRCEF) » Definitions » Cash Conversion Cycle

FRCEF (Fletcher Building) Cash Conversion Cycle : 75.17 (As of Jun. 2024)


View and export this data going back to . Start your Free Trial

What is Fletcher Building Cash Conversion Cycle?

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

Fletcher Building's Days Sales Outstanding for the six months ended in Jun. 2024 was 48.01.
Fletcher Building's Days Inventory for the six months ended in Jun. 2024 was 112.27.
Fletcher Building's Days Payable for the six months ended in Jun. 2024 was 85.11.
Therefore, Fletcher Building's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2024 was 75.17.


Fletcher Building Cash Conversion Cycle Historical Data

The historical data trend for Fletcher Building'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.

Fletcher Building Cash Conversion Cycle Chart

Fletcher Building Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.76 33.15 33.52 47.50 55.12

Fletcher Building Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 47.74 55.05 68.86 67.42 75.17

Competitive Comparison of Fletcher Building's Cash Conversion Cycle

For the Building Materials subindustry, Fletcher Building'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.


Fletcher Building's Cash Conversion Cycle Distribution in the Building Materials Industry

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

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



Fletcher Building 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.

Fletcher Building's Cash Conversion Cycle for the fiscal year that ended in Jun. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=43.98+95.83-84.69
=55.12

Fletcher Building's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=48.01+112.27-85.11
=75.17

* 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.


Fletcher Building  (OTCPK:FRCEF) 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.


Fletcher Building Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Fletcher Building's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Fletcher Building Business Description

Address
810 Great South Road, Penrose, Auckland, NTL, NZL, 1061
Fletcher Building is a New Zealand-based building materials company with operations focused in New Zealand, but also extending to Australia. It has a conglomerate structure with diverse operations across concrete, building products, steel, retail distribution, construction, and development. Most revenue is derived from new house construction, with smaller earnings contributions from commercial and infrastructure construction.

Fletcher Building Headlines

From GuruFocus

Fletcher Building Ltd Investor Day Transcript

By GuruFocus Research 02-13-2024

Fletcher Building Ltd Investor Day Transcript

By GuruFocus Research 02-13-2024