KLM Royal Dutch Airlines's Days Sales Outstanding for the
six
months ended in Dec. 2018 was 20.67.
KLM Royal Dutch Airlines's Days Inventory for the
six
months ended in Dec. 2018 was 7.64.
KLM Royal Dutch Airlines's Days Payable for the
six
months ended in Dec. 2018 was 37.11.
Therefore, KLM Royal Dutch Airlines's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2018 was -8.80.
KLM Royal Dutch Airlines (OTCPK:KLMR) 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.
KLM Royal Dutch Airlines Cash Conversion Cycle Related Terms
KLM Royal Dutch Airlines Cash Conversion Cycle Historical Data
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The historical data trend for KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines Cash Conversion Cycle Chart
For the Airlines subindustry, KLM Royal Dutch Airlines'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.
KLM Royal Dutch Airlines Cash Conversion Cycle vs Transportation Industry
For the Transportation industry and Industrials sector, KLM Royal Dutch Airlines's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where KLM Royal Dutch Airlines's Cash Conversion Cycle falls into.
KLM Royal Dutch Airlines 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.
KLM Royal Dutch Airlines's Cash Conversion Cycle for the fiscal year that ended in Dec. 2018 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.
KLM Royal Dutch Airlines (KLMR) has a Cash Conversion Cycle of -8.80 as of Dec. 2018. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on KLM Royal Dutch Airlines and its competitors.
Is KLM Royal Dutch Airlines' Cash Conversion Cycle too high?
KLM Royal Dutch Airlines' current Cash Conversion Cycle is -8.80.
How does KLM Royal Dutch Airlines' Cash Conversion Cycle compare to ?
KLM Royal Dutch Airlines' Cash Conversion Cycle of -8.80 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.28. 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.28, based on 999 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 KLM Royal Dutch Airlines and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KLM Royal Dutch Airlines's current Cash Conversion Cycle is -8.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KLM Royal Dutch Airlines stock overvalued right now?
KLM Royal Dutch Airlines (KLMR) has a current Cash Conversion Cycle of -8.80. The current Cash Conversion Cycle is -8.80. 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 KLM Royal Dutch Airlines (KLMR), the current Cash Conversion Cycle is -8.80 as of Dec. 2018. 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.
KLM Royal Dutch Airlines is engaged in network activities, which include air transport of passengers and cargo activities, aircraft maintenance, leisure, and other activities linked to air transport. Its segments are: Network, which generates maximum revenue and includes transportation of passengers on scheduled flights, ancillary passenger revenues, SkyTeam alliance partnership arrangements, block-seat sales, transportation of freight, and sale of cargo capacity to third parties; Maintenance, which provides engine services, component services, and airframe maintenance to airlines and clients internationally; Leisure, which covers charter flights and low-cost scheduled flights operated by transavia.com; and Other segment. It generates maximum revenue from Europe and North Africa.
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