Future Retail's Days Sales Outstanding for the
three
months ended in Dec. 2021 was 13.75.
Future Retail's Days Inventory for the
three
months ended in Dec. 2021 was 138.23.
Future Retail's Days Payable for the
three
months ended in Dec. 2021 was 126.64.
Therefore, Future Retail's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2021 was 25.34.
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.
Future Retail Cash Conversion Cycle Related Terms
Future Retail Cash Conversion Cycle Historical Data
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The historical data trend for Future Retail'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.
NSE:FRETAIL vs M, KSS, DDS: Cash Conversion Cycle Comparison
For the Department Stores subindustry, Future Retail'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.
Future Retail Cash Conversion Cycle vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Future Retail's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Future Retail's Cash Conversion Cycle falls into.
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.
Future Retail's Cash Conversion Cycle for the fiscal year that ended in Mar. 2021 is calculated as
* 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.
Future Retail (NSE:FRETAIL) has a Cash Conversion Cycle of 25.34 as of Dec. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Future Retail and its competitors.
Is Future Retail's Cash Conversion Cycle too high?
Future Retail's current Cash Conversion Cycle is 25.34. The Retail - Cyclical industry median Cash Conversion Cycle is 69.06. Future Retail's value of 25.34 is 63.3% below this industry median. Overall, Future Retail has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Future Retail's Cash Conversion Cycle compare to M and KSS?
Future Retail's Cash Conversion Cycle of 25.34 can be compared against companies in the Retail - Cyclical industry. The industry median Cash Conversion Cycle is 69.06. Future Retail's value of 25.34 is 63.3% below 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 Retail - Cyclical company?
The median Cash Conversion Cycle among Retail - Cyclical companies is 69.06, based on 1,122 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. Future Retail's current Cash Conversion Cycle of 25.34 is 63.3% below 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 Future Retail and its competitors. For the Retail - Cyclical industry, the median Cash Conversion Cycle is 69.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Future Retail's current Cash Conversion Cycle is 25.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Future Retail stock overvalued right now?
Future Retail (NSE:FRETAIL) has a current Cash Conversion Cycle of 25.34. The current Cash Conversion Cycle is 25.34 and 63.3% below the Retail - Cyclical industry median of 69.06. Future Retail's overall GF Score™ is 4/100. 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 Future Retail (NSE:FRETAIL), the current Cash Conversion Cycle is 25.34 as of Dec. 2021. 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.
Future Retail Ltd is an India-based company engaged in the business of multi-brand retail trading. The company's store networks are operated under various brand names, including Big Bazaar, easyday, fbb, and Foodhall. The company focuses on the hypermarket, supermarket, and home solutions segment.
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