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Real Estate Investors (LSE:RLE) Cash Conversion Cycle : -141.91 (As of Dec. 2023)


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What is Real Estate Investors Cash Conversion Cycle?

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

Real Estate Investors's Days Sales Outstanding for the six months ended in Dec. 2023 was 53.21.
Real Estate Investors's Days Inventory for the six months ended in Dec. 2023 was 461.36.
Real Estate Investors's Days Payable for the six months ended in Dec. 2023 was 656.48.
Therefore, Real Estate Investors's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was -141.91.


Real Estate Investors Cash Conversion Cycle Historical Data

The historical data trend for Real Estate Investors'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.

* Premium members only.

Real Estate Investors Cash Conversion Cycle Chart

Real Estate Investors Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 828.59 882.37 277.13 238.61 302.02

Real Estate Investors Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -67.18 -209.50 -139.49 -94.94 -141.91

Competitive Comparison of Real Estate Investors's Cash Conversion Cycle

For the REIT - Diversified subindustry, Real Estate Investors'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.


Real Estate Investors's Cash Conversion Cycle Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Real Estate Investors's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Real Estate Investors's Cash Conversion Cycle falls into.



Real Estate Investors 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.

Real Estate Investors's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=17.56+391.16-106.7
=302.02

Real Estate Investors's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=53.21+461.36-656.48
=-141.91

* 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.


Real Estate Investors  (LSE:RLE) 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.


Real Estate Investors Cash Conversion Cycle Related Terms

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Real Estate Investors (LSE:RLE) Business Description

Traded in Other Exchanges
Address
75-77 Colmore Row, 2nd Floor, Birmingham, GBR, B3 2AP
Real Estate Investors PLC operates as a real estate investment trust in the United Kingdom. The property investment firm has interests in commercial and residential properties throughout the country. Its portfolio is diversified by property type and tenant, with a mix of office, retail, and residential assets. The company invests in well located, real estate assets in the established and markets of central Birmingham and the Midlands. Its source of income is in the form of rents derived from retail, office and residential land and property, new lettings, rent reviews, lease renewals, refurbishment, change of use and planning gains. It has a range of occupiers from national and regional multiple retailers to government and corporate office occupiers.

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