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MTTWF (METRO AG) Cash Conversion Cycle : -8.67 (As of Jun. 2024)


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What is METRO AG Cash Conversion Cycle?

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

METRO AG's Days Sales Outstanding for the three months ended in Jun. 2024 was 8.19.
METRO AG's Days Inventory for the three months ended in Jun. 2024 was 33.32.
METRO AG's Days Payable for the three months ended in Jun. 2024 was 50.18.
Therefore, METRO AG's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2024 was -8.67.


METRO AG Cash Conversion Cycle Historical Data

The historical data trend for METRO AG'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.

METRO AG Cash Conversion Cycle Chart

METRO AG Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.37 -18.50 -18.52 -16.30 -12.01

METRO AG Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 -8.02 -10.84 -11.74 -10.85 -8.67

Competitive Comparison of METRO AG's Cash Conversion Cycle

For the Food Distribution subindustry, METRO AG'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.


METRO AG's Cash Conversion Cycle Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, METRO AG's Cash Conversion Cycle distribution charts can be found below:

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



METRO AG 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.

METRO AG's Cash Conversion Cycle for the fiscal year that ended in Sep. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=7.36+32.13-51.5
=-12.01

METRO AG's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=8.19+33.32-50.18
=-8.67

* 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.


METRO AG  (OTCPK:MTTWF) 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.


METRO AG Cash Conversion Cycle Related Terms

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


METRO AG Business Description

Traded in Other Exchanges
Address
Metro-Strasse 1, Dusseldorf, NW, DEU, 40235
METRO AG operates as a food service company. It is active in the self-service wholesale trade with the brands METRO and MAKRO as well as in the delivery sales with the METRO delivery service, and the supply specialists Classic Fine Foods, Pro a Pro, and Rungis Express. Its business consists of segments which include METRO Germany, METRO Western Europe, METRO Russia, METRO Eastern Europe, and others. The other segment includes Hospitality Digital, the business unit that bundles the group's digitalization initiatives. It also includes service companies that provide group-wide services in the areas of real estate, logistics, information technology, advertising, and procurement.

METRO AG Headlines

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