Tongaat Hulett's Days Sales Outstanding for the
six
months ended in Sep. 2021 was 26.99.
Tongaat Hulett's Days Inventory for the
six
months ended in Sep. 2021 was 203.22.
Tongaat Hulett's Days Payable for the
six
months ended in Sep. 2021 was 88.18.
Therefore, Tongaat Hulett's Cash Conversion Cycle (CCC) for the
six
months ended in Sep. 2021 was 142.03.
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.
Tongaat Hulett Cash Conversion Cycle Related Terms
Tongaat Hulett Cash Conversion Cycle Historical Data
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The historical data trend for Tongaat Hulett'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.
JSE:TON vs MDLZ, HSY, TR: Cash Conversion Cycle Comparison
For the Confectioners subindustry, Tongaat Hulett'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.
Tongaat Hulett Cash Conversion Cycle vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Tongaat Hulett's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Tongaat Hulett's Cash Conversion Cycle falls into.
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.
Tongaat Hulett's Cash Conversion Cycle for the fiscal year that ended in Mar. 2021 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.
Tongaat Hulett (JSE:TON) has a Cash Conversion Cycle of 142.03 as of Sep. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Tongaat Hulett and its competitors.
Is Tongaat Hulett's Cash Conversion Cycle too high?
Tongaat Hulett's current Cash Conversion Cycle is 142.03. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.44. Tongaat Hulett's value of 142.03 is 88.3% above this industry median. Overall, Tongaat Hulett has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Tongaat Hulett's Cash Conversion Cycle compare to MDLZ and HSY?
Tongaat Hulett's Cash Conversion Cycle of 142.03 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.44. Tongaat Hulett's value of 142.03 is 88.3% above 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 Consumer Packaged Goods company?
The median Cash Conversion Cycle among Consumer Packaged Goods companies is 75.44, based on 1,942 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. Tongaat Hulett's current Cash Conversion Cycle of 142.03 is 88.3% above 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 Tongaat Hulett and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongaat Hulett's current Cash Conversion Cycle is 142.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongaat Hulett stock overvalued right now?
Tongaat Hulett (JSE:TON) has a current Cash Conversion Cycle of 142.03. The current Cash Conversion Cycle is 142.03 and 88.3% above the Consumer Packaged Goods industry median of 75.44. Tongaat Hulett's overall GF Score™ is 11/100. 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 Tongaat Hulett (JSE:TON), the current Cash Conversion Cycle is 142.03 as of Sep. 2021. 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.
Tongaat Hulett Ltd produces sugar and glucose in Africa. It procures its raw materials both from land it owns and from private farmers. Tongaat sells its products to customers in the foodservice industry and to consumers as branded products. Raw sugar sales make up most of the company's revenue. Its biggest markets are South Africa, Zimbabwe, and Mozambique. The company also earns revenue by converting and developing land that it owns and has used for agricultural purposes. Additionally, the by-products from its manufacturing processes create renewable energy, which the company uses to supply electricity to the grid in some instances.
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