REI Agro's Days Sales Outstanding for the
three
months ended in Mar. 2014 was 264.46.
REI Agro's Days Inventory for the
three
months ended in Mar. 2014 was 341.98.
REI Agro's Days Payable for the
three
months ended in Mar. 2014 was 25.73.
Therefore, REI Agro's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2014 was 580.71.
REI Agro (LSE:REAA) 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.
REI Agro Cash Conversion Cycle Related Terms
REI Agro Cash Conversion Cycle Historical Data
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The historical data trend for REI Agro'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.
REI Agro Cash Conversion Cycle Competitor Comparison
For the Packaged Foods subindustry, REI Agro'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.
REI Agro Cash Conversion Cycle vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, REI Agro's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where REI Agro'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.
REI Agro's Cash Conversion Cycle for the fiscal year that ended in Mar. 2014 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.
REI Agro (LSE:REAA) has a Cash Conversion Cycle of 580.71 as of Mar. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on REI Agro and its competitors.
Is REI Agro's Cash Conversion Cycle too high?
REI Agro's current Cash Conversion Cycle is 580.71. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.49. REI Agro's value of 580.71 is 669.3% above this industry median.
How does REI Agro's Cash Conversion Cycle compare to competitors?
REI Agro's Cash Conversion Cycle of 580.71 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.49. REI Agro's value of 580.71 is 669.3% 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 75.49, based on 1,943 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. REI Agro's current Cash Conversion Cycle of 580.71 is 669.3% 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 REI Agro and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. REI Agro's current Cash Conversion Cycle is 580.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REI Agro stock overvalued right now?
REI Agro (LSE:REAA) has a current Cash Conversion Cycle of 580.71. The current Cash Conversion Cycle is 580.71 and 669.3% above the Consumer Packaged Goods industry median of 75.49. 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 REI Agro (LSE:REAA), the current Cash Conversion Cycle is 580.71 as of Mar. 2014. 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.
REI Agro Ltd is engaged in processing basmati rice and market its products under the brand name Raindrops. The company operates in two business segments - the business of processing, trading, and marketing of agro products and generation of power through Wind farm generators. The products of the company are sold both in domestic and international markets.
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