Albemarle & Bond Holdings (LSE:ABM) Cash Conversion Cycle : 286.90 (As of Jun. 2013)

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What is Albemarle & Bond Holdings Cash Conversion Cycle?

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

Albemarle & Bond Holdings's Days Sales Outstanding for the six months ended in Jun. 2013 was 160.06.
Albemarle & Bond Holdings's Days Inventory for the six months ended in Jun. 2013 was 149.08.
Albemarle & Bond Holdings's Days Payable for the six months ended in Jun. 2013 was 22.24.
Therefore, Albemarle & Bond Holdings's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2013 was 286.90.

Albemarle & Bond Holdings Cash Conversion Cycle Historical Data

The historical data trend for Albemarle & Bond Holdings'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.

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Albemarle & Bond Holdings Cash Conversion Cycle Chart

Albemarle & Bond Holdings Annual Data

Trend

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Cash Conversion Cycle

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584.59

302.79

231.80

236.10

286.90

Albemarle & Bond Holdings Semi-Annual Data
	Jun92	Jun93	Jun94	Jun95	Jun96	Jun97	Jun98	Jun01	Jun02	Jun03	Jun04	Jun05	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13
Cash Conversion Cycle	Get a 7-Day Free Trial															584.59	302.79	231.80	236.10	286.90

Competitive Comparison of Albemarle & Bond Holdings's Cash Conversion Cycle

For the Credit Services subindustry, Albemarle & Bond Holdings'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.

Albemarle & Bond Holdings's Cash Conversion Cycle Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Albemarle & Bond Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Albemarle & Bond Holdings's Cash Conversion Cycle falls into.

Albemarle & Bond Holdings 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.

Albemarle & Bond Holdings's Cash Conversion Cycle for the fiscal year that ended in Jun. 2013 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	160.06	+	149.08	-	22.24
	=	286.90

Albemarle & Bond Holdings's Cash Conversion Cycle for the quarter that ended in Jun. 2013 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	160.06	+	149.08	-	22.24
	=	286.90

Albemarle & Bond Holdings (LSE:ABM) 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.

Albemarle & Bond Holdings Cash Conversion Cycle Related Terms

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Albemarle & Bond Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Albemarle & Bond Holdings PLC (LSE:ABM) » Definitions » Cash Conversion Cycle

Traded in Other Exchanges

N/A

Address

Website

http://www.albemarlebondplc.com

Albemarle & Bond Holdings PLC was incorporated on January 17, 1986. The Company is a holding company engaged in pawnbroking, retail jewellery sales, gold purchasing, unsecured lending, including cheque cashing and other financial services. It has approximately 230 stores and 1,000 employees. Operating under the two brands, Albemarle Bond and Herbert Brown, it provides its customers with a range of services including jewellery retailing, pawnbroking loans, gold purchasing and a range of unsecured loan products. The pawn loan is secured against jewellery for a maximum of six months. The customer can redeem their jewellery by repaying the loan and interest owing at any time without incurring penalties for early redemption. The Company provides short-term loans through three products, PayDay Advances, Speedloans, and Cheque Cashing. PayDay Advances offer customers short-term unsecured loans to meet their cash flow requirements until wages are received. Speedloans provide customers with immediately available installment loans over a longer term of between six and 18 months and Cheque Cashing provides access to their cash for customers who have received cheques. The Company offers a range of new and second hand jewellery. Herbert Brown offers a range of new, second hand and antique jewellery.