Rotala (LSE:ROL) Cash Conversion Cycle : -10.86 (As of May. 2023)

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What is Rotala Cash Conversion Cycle?

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

Rotala's Days Sales Outstanding for the six months ended in May. 2023 was 15.6.
Rotala's Days Inventory for the six months ended in May. 2023 was 4.31.
Rotala's Days Payable for the six months ended in May. 2023 was 30.77.
Therefore, Rotala's Cash Conversion Cycle (CCC) for the six months ended in May. 2023 was -10.86.

Rotala Cash Conversion Cycle Historical Data

The historical data trend for Rotala'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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Rotala Cash Conversion Cycle Chart

Rotala Annual Data

Trend

Nov13

Nov14

Nov15

Nov16

Nov17

Nov18

Nov19

Nov20

Nov21

Nov22

Cash Conversion Cycle

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10.58

14.34

13.20

1.84

-7.88

Rotala Semi-Annual Data
	Nov13	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23
Cash Conversion Cycle	Get a 7-Day Free Trial															36.35	28.95	4.05	1.21	-10.86

Competitive Comparison of Rotala's Cash Conversion Cycle

For the Railroads subindustry, Rotala'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.

Rotala's Cash Conversion Cycle Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Rotala's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Rotala's Cash Conversion Cycle falls into.

Rotala 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.

Rotala's Cash Conversion Cycle for the fiscal year that ended in Nov. 2022 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	4.8	+	5.67	-	18.35
	=	-7.88

Rotala's Cash Conversion Cycle for the quarter that ended in May. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	15.6	+	4.31	-	30.77
	=	-10.86

Rotala (LSE:ROL) 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.

Rotala Cash Conversion Cycle Related Terms

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Rotala (LSE:ROL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Rotala PLC (LSE:ROL) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

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Address

Hallbridge Way, Tipton Road, Cross Quays Business Park, Tividale, Oldbury, West Midlands, GBR, B69 3HW

Website

https://www.rotalaplc.com

Rotala PLC is a UK based company, operates commercial and subsidized bus routes for businesses, local authorities, the public, and private individuals. It operates its business through Contracted, Commercial and Charter segments. It has operations across the United Kingdom including, the North West, West Midlands, South West, and Heathrow and Gatwick airports. The Contracted and Charter Services are usually delivered against an agreed service level agreement and the Commercial segment is engaged in providing passenger loading services. The company derives majority of its revenue from the Commercial segment.