CMM Infraprojects (NSE:CMMIPL) Cash Conversion Cycle: 98.99 (As of Mar. 2018)


What is CMM Infraprojects Cash Conversion Cycle?

CMM Infraprojects NSE:CMMIPL Cash Conversion Cycle is 98.99 as of Mar. 2018.

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

CMM Infraprojects's Days Sales Outstanding for the six months ended in Mar. 2018 was 65.6.
CMM Infraprojects's Days Inventory for the six months ended in Mar. 2018 was 76.81.
CMM Infraprojects's Days Payable for the six months ended in Mar. 2018 was 43.42.
Therefore, CMM Infraprojects's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2018 was 98.99.

CMM Infraprojects  (NSE:CMMIPL) 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.

CMM Infraprojects Cash Conversion Cycle Related Terms

CMM Infraprojects Cash Conversion Cycle Historical Data

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The historical data trend for CMM Infraprojects'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.

CMM Infraprojects Cash Conversion Cycle Chart

CMM Infraprojects Annual Data
Trend Mar17 Mar18
Cash Conversion Cycle
69.75 83.05

CMM Infraprojects Semi-Annual Data
Mar17 Sep17 Mar18
Cash Conversion Cycle 0.00 47.86 98.99

CMM Infraprojects Cash Conversion Cycle Competitor Comparison

For the Engineering & Construction subindustry, CMM Infraprojects'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.

CMM Infraprojects Cash Conversion Cycle vs Construction Industry

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

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


CMM Infraprojects 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.

CMM Infraprojects's Cash Conversion Cycle for the fiscal year that ended in Mar. 2018 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=54.72+55.37-27.04
=83.05

CMM Infraprojects's Cash Conversion Cycle for the quarter that ended in Mar. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=65.6+76.81-43.42
=98.99

* 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 98.99 mean?
CMM Infraprojects (NSE:CMMIPL) has a Cash Conversion Cycle of 98.99 as of Mar. 2018. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on CMM Infraprojects and its competitors.
Is CMM Infraprojects' Cash Conversion Cycle too high?
CMM Infraprojects' current Cash Conversion Cycle is 98.99. The Construction industry median Cash Conversion Cycle is 55.82. CMM Infraprojects' value of 98.99 is 77.3% above this industry median.
How does CMM Infraprojects' Cash Conversion Cycle compare to competitors?
CMM Infraprojects' Cash Conversion Cycle of 98.99 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.82. CMM Infraprojects' value of 98.99 is 77.3% above 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.82, based on 1,762 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. CMM Infraprojects's current Cash Conversion Cycle of 98.99 is 77.3% above 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 CMM Infraprojects and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CMM Infraprojects's current Cash Conversion Cycle is 98.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CMM Infraprojects stock overvalued right now?
CMM Infraprojects (NSE:CMMIPL) has a current Cash Conversion Cycle of 98.99. The current Cash Conversion Cycle is 98.99 and 77.3% above the Construction industry median of 55.82. 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 CMM Infraprojects (NSE:CMMIPL), the current Cash Conversion Cycle is 98.99 as of Mar. 2018. 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.

CMM Infraprojects Business Description

Address 108, Shalimar Corporate Centre, 8-B South Tukoganj, Indore, MP, IND, 452001
CMM Infraprojects Ltd is engaged in civil engineering activities. It is an engineering and construction contractor in the fields of constructing public housing, commercial complexes, public parks, corporate & IT offices, sewerage & irrigation projects and highways. It has construction projects across the nation.