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Gayatri Rubbers and Chemicals (NSE:GRCL) Cash Conversion Cycle : 125.70 (As of Mar. 2024)


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What is Gayatri Rubbers and Chemicals Cash Conversion Cycle?

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

Gayatri Rubbers and Chemicals's Days Sales Outstanding for the six months ended in Mar. 2024 was 71.23.
Gayatri Rubbers and Chemicals's Days Inventory for the six months ended in Mar. 2024 was 63.55.
Gayatri Rubbers and Chemicals's Days Payable for the six months ended in Mar. 2024 was 9.08.
Therefore, Gayatri Rubbers and Chemicals's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2024 was 125.70.


Gayatri Rubbers and Chemicals Cash Conversion Cycle Historical Data

The historical data trend for Gayatri Rubbers and Chemicals'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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Gayatri Rubbers and Chemicals Cash Conversion Cycle Chart

Gayatri Rubbers and Chemicals Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Cash Conversion Cycle
-76.87 2.28 62.75 94.03 125.70

Gayatri Rubbers and Chemicals Semi-Annual Data
Mar20 Mar21 Mar22 Mar23 Mar24
Cash Conversion Cycle -76.87 2.28 62.75 94.03 125.70

Competitive Comparison of Gayatri Rubbers and Chemicals's Cash Conversion Cycle

For the Specialty Chemicals subindustry, Gayatri Rubbers and Chemicals'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.


Gayatri Rubbers and Chemicals's Cash Conversion Cycle Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Gayatri Rubbers and Chemicals's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Gayatri Rubbers and Chemicals's Cash Conversion Cycle falls into.


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Gayatri Rubbers and Chemicals 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.

Gayatri Rubbers and Chemicals'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
=71.23+63.55-9.08
=125.70

Gayatri Rubbers and Chemicals'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
=71.23+63.55-9.08
=125.70

* 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.


Gayatri Rubbers and Chemicals  (NSE:GRCL) 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.


Gayatri Rubbers and Chemicals Cash Conversion Cycle Related Terms

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Gayatri Rubbers and Chemicals Business Description

Traded in Other Exchanges
N/A
Address
Malerna Road, Plot No. 11, Gali No. 3, Opposite Beri ka Bagh, Ballabgarh, Faridabad, HR, IND, 121004
Gayatri Rubbers and Chemicals Ltd is engaged in manufacturing and trading rubber products. The company's product portfolio includes Aluminium rubber profiles, Automobile rubber profiles, Sponge rubber components, Clear PVC profiles, Industrial rubber, and Railway sector rubber. Geographically, the company operates within India.