Walcom Group (LSE:WALG) Cash Conversion Cycle: 61.17 (As of Jun. 2019)


What is Walcom Group Cash Conversion Cycle?

Walcom Group LSE:WALG Cash Conversion Cycle is 61.17 as of Jun. 2019. The stock has 6 warning signs investors should review.

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

Walcom Group's Days Sales Outstanding for the six months ended in Jun. 2019 was 34.4.
Walcom Group's Days Inventory for the six months ended in Jun. 2019 was 72.88.
Walcom Group's Days Payable for the six months ended in Jun. 2019 was 46.11.
Therefore, Walcom Group's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2019 was 61.17.


Walcom Group  (LSE:WALG) 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.


Walcom Group Cash Conversion Cycle Related Terms


Walcom Group Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Walcom Group'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.

Walcom Group Cash Conversion Cycle Chart

Walcom Group Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 45.13 60.96 54.53 94.21 99.16

Walcom Group Semi-Annual Data
Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19
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 88.24 94.87 100.59 66.51 61.17

Walcom Group Cash Conversion Cycle Competitor Comparison

For the Packaged Foods subindustry, Walcom Group'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.


Walcom Group Cash Conversion Cycle vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Walcom Group's Cash Conversion Cycle distribution charts can be found below:

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



Walcom Group 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.

Walcom Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2018 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=69.93+58.59-29.36
=99.16

Walcom Group's Cash Conversion Cycle for the quarter that ended in Jun. 2019 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=34.4+72.88-46.11
=61.17

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 61.17 mean?
Walcom Group (LSE:WALG) has a Cash Conversion Cycle of 61.17 as of Jun. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Walcom Group and its competitors.
Is Walcom Group's Cash Conversion Cycle too high?
Walcom Group's current Cash Conversion Cycle is 61.17. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.54. Walcom Group's value of 61.17 is 19% below this industry median.
How does Walcom Group's Cash Conversion Cycle compare to competitors?
Walcom Group's Cash Conversion Cycle of 61.17 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.54. Walcom Group's value of 61.17 is 19% below 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 75.54, based on 1,942 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. Walcom Group's current Cash Conversion Cycle of 61.17 is 19% below 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 Walcom Group and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walcom Group's current Cash Conversion Cycle is 61.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walcom Group stock overvalued right now?
Walcom Group (LSE:WALG) has a current Cash Conversion Cycle of 61.17. The current Cash Conversion Cycle is 61.17 and 19% below the Consumer Packaged Goods industry median of 75.54. 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 Walcom Group (LSE:WALG), the current Cash Conversion Cycle is 61.17 as of Jun. 2019. 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.

Walcom Group Business Description

Address Number 351 Guo Shou Jing Road, Part D, Mingtai Building, ZJ High-tech Park, Shangai, CHN, 201203
Walcom Group Ltd is an investment holding company engaged in the manufacturing, distribution, and sale of chemical feed and additive products. The company offers products for pigs, poultries, aquatic, cows, and beef cattle and sheeps. Its pig's product includes porcinin plus, and porcimax; poultries include eggronin plus, and avianin plus, and aquatic include aquanin plus. Walcom's operations are located in China, Taiwan, Thailand, Korea and others.