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MBC (MasterBrand) Cash Conversion Cycle : 48.24 (As of Sep. 2024)


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What is MasterBrand Cash Conversion Cycle?

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

MasterBrand's Days Sales Outstanding for the three months ended in Sep. 2024 was 27.29.
MasterBrand's Days Inventory for the three months ended in Sep. 2024 was 54.11.
MasterBrand's Days Payable for the three months ended in Sep. 2024 was 33.16.
Therefore, MasterBrand's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 48.24.


MasterBrand Cash Conversion Cycle Historical Data

The historical data trend for MasterBrand'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.

MasterBrand Cash Conversion Cycle Chart

MasterBrand Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
- 53.01 51.18 53.02 58.22

MasterBrand Quarterly Data
Dec19 Dec20 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 55.17 48.33 49.79 48.04 48.24

Competitive Comparison of MasterBrand's Cash Conversion Cycle

For the Furnishings, Fixtures & Appliances subindustry, MasterBrand'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.


MasterBrand's Cash Conversion Cycle Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, MasterBrand's Cash Conversion Cycle distribution charts can be found below:

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



MasterBrand 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.

MasterBrand'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
=32.98+62.3-37.06
=58.22

MasterBrand's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=27.29+54.11-33.16
=48.24

* 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.


MasterBrand  (NYSE:MBC) 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.


MasterBrand Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of MasterBrand's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


MasterBrand Business Description

Traded in Other Exchanges
N/A
Address
3300 Enterprise Parkway, Suite 300, Beachwood, OH, USA, 44122
MasterBrand Inc operates as a residential cabinet manufacturer in North America. It offers a comprehensive portfolio of residential cabinetry products for the kitchen, bathroom, and other parts of the home. The firm sells its products throughout the United States and Canada through three primary channels: dealers, retailers, and builders.
Executives
Mark A. Young officer: VP, Chief Accounting Officer 701 LIMA AVENUE, FINDLAY OH 45840
Ann F Hackett director
Robert Crisci director C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
Kurt Wanninger officer: EVP & Chief Operations Officer C/O NORCRAFT COMPANIES, INC., 3020 DENMARK AVENUE, SUITE 100, EAGAN MN 55121
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Juliana L Chugg director 1200 WILLOW LAKE BOULEVARD, PO BOX 64683, ST PAUL MN 55164-0683
David D Petratis director 1415 ROSELLE ROAD, PALATINE IL 60067
Andrean Horton officer: EVP, CLO & Secretary 3637 RIDGEWOOD RD, FAIRLAWN X1 44333
Jeffery S. Perry director 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Bruce Alan Kendrick officer: EVP & Chief HR Officer 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Van Doren Martin Scott officer: EVP, Sales 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Andrea Helen Simon officer: EVP & CFO 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Navneet Grewal officer: EVP, Chief Digital & Tech Off. 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Patrick D Hallinan director FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015