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Ashoka Buildcon (NSE:ASHOKA) Cash Conversion Cycle : -8.14 (As of Jun. 2024)


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What is Ashoka Buildcon Cash Conversion Cycle?

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

Ashoka Buildcon's Days Sales Outstanding for the three months ended in Jun. 2024 was 39.17.
Ashoka Buildcon's Days Inventory for the three months ended in Jun. 2024 was 37.77.
Ashoka Buildcon's Days Payable for the three months ended in Jun. 2024 was 85.08.
Therefore, Ashoka Buildcon's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2024 was -8.14.


Ashoka Buildcon Cash Conversion Cycle Historical Data

The historical data trend for Ashoka Buildcon'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.

Ashoka Buildcon Cash Conversion Cycle Chart

Ashoka Buildcon Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.28 34.82 16.06 11.65 3.22

Ashoka Buildcon 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 6.72 10.62 10.08 7.81 -8.14

Competitive Comparison of Ashoka Buildcon's Cash Conversion Cycle

For the Engineering & Construction subindustry, Ashoka Buildcon'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.


Ashoka Buildcon's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, Ashoka Buildcon's Cash Conversion Cycle distribution charts can be found below:

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



Ashoka Buildcon 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.

Ashoka Buildcon's Cash Conversion Cycle for the fiscal year that ended in Mar. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=40.28+33.75-70.81
=3.22

Ashoka Buildcon'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
=39.17+37.77-85.08
=-8.14

* 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.


Ashoka Buildcon  (NSE:ASHOKA) 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.


Ashoka Buildcon Cash Conversion Cycle Related Terms

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Ashoka Buildcon Business Description

Traded in Other Exchanges
Address
Ashoka Marg, S. No. 861, Ashoka House, Vadala, Nashik, MH, IND, 422011
Ashoka Buildcon Ltd develops highways and is also active in power transmission and distribution. It operates in three segments: The construction and Contract Related Activities segment including Engineering, Procurement, and Construction activity of infra projects; the Build operate and transfer segment includes Annuity to develop infra developer under BOT & Annuity; and the Sale of Goods segment consists mainly of Sale of construction materials which includes RMC and Real estate. The company has its business operations across India. The majority of the revenue is generated from construction and contract-related activity.

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