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.
PT Kertas Basuki Rachmat Indonesia Tbk Cash Conversion Cycle Related Terms
PT Kertas Basuki Rachmat Indonesia Tbk 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.
PT Kertas Basuki Rachmat Indonesia Tbk Cash Conversion Cycle Chart
PT Kertas Basuki Rachmat Indonesia Tbk Annual Data
For the Paper & Paper Products subindustry, PT Kertas Basuki Rachmat Indonesia Tbk'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.
PT Kertas Basuki Rachmat Indonesia Tbk Cash Conversion Cycle vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, PT Kertas Basuki Rachmat Indonesia Tbk's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where PT Kertas Basuki Rachmat Indonesia Tbk's Cash Conversion Cycle falls into.
PT Kertas Basuki Rachmat Indonesia Tbk 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.
* 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.
What does a Cash Conversion Cycle of -174.36 mean?
PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI) has a Cash Conversion Cycle of -174.36 as of Sep. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PT Kertas Basuki Rachmat Indonesia Tbk and its competitors.
Is PT Kertas Basuki Rachmat Indonesia Tbk's Cash Conversion Cycle too high?
PT Kertas Basuki Rachmat Indonesia Tbk's current Cash Conversion Cycle is -174.36. Overall, PT Kertas Basuki Rachmat Indonesia Tbk has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PT Kertas Basuki Rachmat Indonesia Tbk's Cash Conversion Cycle compare to competitors?
PT Kertas Basuki Rachmat Indonesia Tbk's Cash Conversion Cycle of -174.36 can be compared against companies in the Forest Products industry. The industry median Cash Conversion Cycle is 91.34. 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 Forest Products company?
The median Cash Conversion Cycle among Forest Products companies is 91.34, based on 283 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. 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 PT Kertas Basuki Rachmat Indonesia Tbk and its competitors. For the Forest Products industry, the median Cash Conversion Cycle is 91.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Kertas Basuki Rachmat Indonesia Tbk's current Cash Conversion Cycle is -174.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Kertas Basuki Rachmat Indonesia Tbk stock overvalued right now?
PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI) has a current Cash Conversion Cycle of -174.36. The current Cash Conversion Cycle is -174.36. PT Kertas Basuki Rachmat Indonesia Tbk's overall GF Score™ is 4/100. 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 PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI), the current Cash Conversion Cycle is -174.36 as of Sep. 2019. 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.
PT Kertas Basuki Rachmat Indonesia Tbk Business Description
AddressJalan Letjen. TB. Simatupang no.1, Gedung Antam Office Park, Tower B Lantai 11, RT. 010/04 Tanjung Barat - Jagakarsa, Jakarta Selatan, IDN, 12530
PT Kertas Basuki Rachmat Indonesia Tbk manufactures a wide range of paper products for office and consumer use. It has produced various papers for offices and general needs such as intermediate liner, wrapping, back kraft and Uncoated Wood Free Paper. The firm also offers culture papers, writing papers, printing papers, and wrapping papers. Its products are in the form of sheets, plano size, and rolls. The firm mainly operates in Indonesia.
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