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Mondi (MODLF) Cash Conversion Cycle : 114.62 (As of Dec. 2018)


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What is Mondi Cash Conversion Cycle?

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

Mondi's Days Sales Outstanding for the six months ended in Dec. 2018 was 62.28.
Mondi's Days Inventory for the six months ended in Dec. 2018 was 87.67.
Mondi's Days Payable for the six months ended in Dec. 2018 was 35.33.
Therefore, Mondi's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2018 was 114.62.


Mondi Cash Conversion Cycle Historical Data

The historical data trend for Mondi'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.

Mondi Cash Conversion Cycle Chart

Mondi 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 93.31 97.50 50.39 72.90 114.62

Mondi Semi-Annual Data
Dec06 Dec07 Dec08 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 Premium Member Only Premium Member Only Premium Member Only 93.31 97.50 50.39 72.90 114.62

Competitive Comparison of Mondi's Cash Conversion Cycle

For the Paper & Paper Products subindustry, Mondi'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.


Mondi's Cash Conversion Cycle Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Mondi's Cash Conversion Cycle distribution charts can be found below:

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



Mondi 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.

Mondi'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
=62.28+87.67-35.33
=114.62

Mondi's Cash Conversion Cycle for the quarter that ended in Dec. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=62.28+87.67-35.33
=114.62

* 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.


Mondi  (GREY:MODLF) 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.


Mondi Cash Conversion Cycle Related Terms

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


Mondi (MODLF) Business Description

Traded in Other Exchanges
N/A
Address
4th Floor, No. 3 Melrose Boulevard, Melrose Arch, Gauteng, Johannesburg, ZAF, 2196
Mondi Ltd manufactures and sells packaging, paper, and paper products. The company organizes itself into five segments based on product and geography. The packaging paper, fiber packaging, and consumer packaging segments generate the majority of revenue and sell packaging products, extrusion coatings, and liners. The uncoated fine paper segment sells fine paper and newsprint paper. The South Africa segment sells packaging and paper products exclusively in South Africa. Mondi's customers operate in a wide range of industries including automotive, construction, chemicals, food and beverage, personal care, medical, packaging, pet care, and printing. The majority of revenue comes from Europe.

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