PT Rimo International Lestari Tbk (ISX:RIMO) 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.
PT Rimo International Lestari Tbk Cash Conversion Cycle Related Terms
PT Rimo International Lestari 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 Rimo International Lestari Tbk Cash Conversion Cycle Chart
PT Rimo International Lestari Tbk Cash Conversion Cycle Competitor Comparison
For the Real Estate - Development subindustry, PT Rimo International Lestari 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 Rimo International Lestari Tbk Cash Conversion Cycle vs Real Estate Industry
For the Real Estate industry and Real Estate sector, PT Rimo International Lestari Tbk's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where PT Rimo International Lestari Tbk's Cash Conversion Cycle falls into.
PT Rimo International Lestari 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.
PT Rimo International Lestari Tbk (ISX:RIMO) has a Cash Conversion Cycle of 13.58 as of Sep. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PT Rimo International Lestari Tbk and its competitors.
Is PT Rimo International Lestari Tbk's Cash Conversion Cycle too high?
PT Rimo International Lestari Tbk's current Cash Conversion Cycle is 13.58. The Real Estate industry median Cash Conversion Cycle is 320.74. PT Rimo International Lestari Tbk's value of 13.58 is 95.8% below this industry median. Overall, PT Rimo International Lestari Tbk has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PT Rimo International Lestari Tbk's Cash Conversion Cycle compare to competitors?
PT Rimo International Lestari Tbk's Cash Conversion Cycle of 13.58 can be compared against companies in the Real Estate industry. The industry median Cash Conversion Cycle is 320.74. PT Rimo International Lestari Tbk's value of 13.58 is 95.8% 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 320.74, 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. PT Rimo International Lestari Tbk's current Cash Conversion Cycle of 13.58 is 95.8% 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 PT Rimo International Lestari Tbk and its competitors. For the Real Estate industry, the median Cash Conversion Cycle is 320.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Rimo International Lestari Tbk's current Cash Conversion Cycle is 13.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Rimo International Lestari Tbk stock overvalued right now?
PT Rimo International Lestari Tbk (ISX:RIMO) has a current Cash Conversion Cycle of 13.58. The current Cash Conversion Cycle is 13.58 and 95.8% below the Real Estate industry median of 320.74. PT Rimo International Lestari 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 Rimo International Lestari Tbk (ISX:RIMO), the current Cash Conversion Cycle is 13.58 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 Rimo International Lestari Tbk Business Description
PT Rimo International Lestari Tbk is involved in the property business. It seeks to develop high quality integrated townships with modern infrastructure and amenities. The group is also involved in developing a diverse range of products from affordable to premium housing in order to reach out to a wide variety of customers, whilst assisting the government to realize its aspiration in making housing more accessible to the general public. It operates in three segments Department Store, Real Estate, and Service. The portfolio of the group includes various project such as South Hills Apartment, Puncak golf and resort, Kota Olympia, Gangnam Townhouse, Puuwatu Hills, Maestro Hotel and others. Geographically the activities are carried out through Indonesia.
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