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Indesit Co (Indesit Co) Cash Conversion Cycle : 10.75 (As of Sep. 2014)


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What is Indesit Co Cash Conversion Cycle?

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

Indesit Co's Days Sales Outstanding for the three months ended in Sep. 2014 was 71.29.
Indesit Co's Days Inventory for the three months ended in Sep. 2014 was 63.91.
Indesit Co's Days Payable for the three months ended in Sep. 2014 was 124.45.
Therefore, Indesit Co's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2014 was 10.75.


Indesit Co Cash Conversion Cycle Historical Data

The historical data trend for Indesit Co'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.

Indesit Co Cash Conversion Cycle Chart

Indesit Co 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 -30.54 -20.69 -22.63 -24.82 -22.82

Indesit Co Quarterly Data
Dec09 Mar10 Jun10 Sep10 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 14.42 0.85 -7.02 7.19 10.75

Competitive Comparison of Indesit Co's Cash Conversion Cycle

For the Consumer Electronics subindustry, Indesit Co'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.


Indesit Co's Cash Conversion Cycle Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Indesit Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Indesit Co's Cash Conversion Cycle falls into.



Indesit Co 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.

Indesit Co'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
=59.6+55.09-137.51
=-22.82

Indesit Co'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
=71.29+63.91-124.45
=10.75

* 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.


Indesit Co  (OTCPK:IDESY) 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.


Indesit Co Cash Conversion Cycle Related Terms

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Indesit Co (Indesit Co) Business Description

Traded in Other Exchanges
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Address
Indesit Co is founded in 1975. The Company is engaged in the production and distribution of appliances such as washing machines, dryers, dishwashers, fridges, freezers, cookers, hoods, ovens and hobs. The Company's geographical segments are Western Europe, Eastern Europe and International. It operates mainly in Italy, Poland, the UK, Russia and Turkey. Its main brands are Indesit, Hotpoint and Scholtès. The Company is subject to various national and international laws and regulations.

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