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Garuda Construction and Engineering (NSE:GARUDA) Cash Conversion Cycle : 86.81 (As of Mar. 2024)


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What is Garuda Construction and Engineering Cash Conversion Cycle?

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

Garuda Construction and Engineering's Days Sales Outstanding for the six months ended in Mar. 2024 was 299.73.
Garuda Construction and Engineering's Days Inventory for the six months ended in Mar. 2024 was 27.05.
Garuda Construction and Engineering's Days Payable for the six months ended in Mar. 2024 was 239.97.
Therefore, Garuda Construction and Engineering's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2024 was 86.81.


Garuda Construction and Engineering Cash Conversion Cycle Historical Data

The historical data trend for Garuda Construction and Engineering'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.

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Garuda Construction and Engineering Cash Conversion Cycle Chart

Garuda Construction and Engineering Annual Data
Trend Mar22 Mar23 Mar24
Cash Conversion Cycle
-185.36 -47.15 86.81

Garuda Construction and Engineering Semi-Annual Data
Mar22 Mar23 Mar24
Cash Conversion Cycle -185.36 -47.15 86.81

Competitive Comparison of Garuda Construction and Engineering's Cash Conversion Cycle

For the Engineering & Construction subindustry, Garuda Construction and Engineering'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.


Garuda Construction and Engineering's Cash Conversion Cycle Distribution in the Construction Industry

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

* The bar in red indicates where Garuda Construction and Engineering's Cash Conversion Cycle falls into.



Garuda Construction and Engineering 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.

Garuda Construction and Engineering'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
=299.73+27.05-239.97
=86.81

Garuda Construction and Engineering's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=299.73+27.05-239.97
=86.81

* 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.


Garuda Construction and Engineering  (NSE:GARUDA) 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.


Garuda Construction and Engineering Cash Conversion Cycle Related Terms

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Garuda Construction and Engineering Business Description

Traded in Other Exchanges
Address
C -3 Block, 201, A Wing, Fortune 2000, Bandra Kurla Complex, Bandra East, Mumbai, MH, IND, 400 051
Garuda Construction and Engineering Ltd is a civil construction company. It provides end-to-end civil construction for residential, commercial, residential cum commercial, infrastructure and industrial projects and additional services for infrastructure and also hospitality projects, Wherein, civil construction includes the construction of residential, hospitality, industrial, infrastructural and commercial buildings, construction of concrete building structures and composite steel structures which are required for the civil construction. Its end-to-end civil construction starts with a detailed route survey, designing, detailed engineering, mobilization of resources, micro scheduling of construction activities, obtaining construction permissions and conducting soil/water testing.

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