Karuturi Global (NSE:KGL) Cash Conversion Cycle: 5.17 (As of Dec. 2018)


What is Karuturi Global Cash Conversion Cycle?

Karuturi Global NSE:KGL Cash Conversion Cycle is 5.17 as of Dec. 2018.

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

Karuturi Global's Days Sales Outstanding for the three months ended in Dec. 2018 was 399.26.
Karuturi Global's Days Inventory for the three months ended in Dec. 2018 was 23.64.
Karuturi Global's Days Payable for the three months ended in Dec. 2018 was 417.73.
Therefore, Karuturi Global's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2018 was 5.17.


Karuturi Global  (NSE:KGL) 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.


Karuturi Global Cash Conversion Cycle Related Terms


Karuturi Global Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Karuturi Global'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.

Karuturi Global Cash Conversion Cycle Chart

Karuturi Global Annual Data
Trend Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -126.07 -121.11 -149.30 -151.05 -129.65

Karuturi Global Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 -123.16 23.10 -154.42 -31.04 5.17

NSE:KGL vs SIAF: Cash Conversion Cycle Comparison

For the Farm Products subindustry, Karuturi Global'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.


Karuturi Global Cash Conversion Cycle vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Karuturi Global's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Karuturi Global's Cash Conversion Cycle falls into.



Karuturi Global 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.

Karuturi Global'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
=270.17+18.49-418.31
=-129.65

Karuturi Global's Cash Conversion Cycle for the quarter that ended in Dec. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=399.26+23.64-417.73
=5.17

* 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 5.17 mean?
Karuturi Global (NSE:KGL) has a Cash Conversion Cycle of 5.17 as of Dec. 2018. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Karuturi Global and its competitors.
Is Karuturi Global's Cash Conversion Cycle too high?
Karuturi Global's current Cash Conversion Cycle is 5.17. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.44. Karuturi Global's value of 5.17 is 93.1% below this industry median.
How does Karuturi Global's Cash Conversion Cycle compare to SIAF?
Karuturi Global's Cash Conversion Cycle of 5.17 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.44. Karuturi Global's value of 5.17 is 93.1% 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 Consumer Packaged Goods company?
The median Cash Conversion Cycle among Consumer Packaged Goods companies is 75.44, based on 1,942 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. Karuturi Global's current Cash Conversion Cycle of 5.17 is 93.1% 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 Karuturi Global and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Karuturi Global's current Cash Conversion Cycle is 5.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Karuturi Global stock overvalued right now?
Karuturi Global (NSE:KGL) has a current Cash Conversion Cycle of 5.17. The current Cash Conversion Cycle is 5.17 and 93.1% below the Consumer Packaged Goods industry median of 75.44. 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 Karuturi Global (NSE:KGL), the current Cash Conversion Cycle is 5.17 as of Dec. 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.

Karuturi Global Business Description

Address 11, Crescent Road, Number 204, Embassy Center, Bangalore, KA, IND, 560001
Karuturi Global Ltd is engaged in the manufacturing of flowers, plant and plant materials. The company is a producer and exporter of cut roses and has its operations in India, Ethiopia, Dubai, and Kenya. It is involved in the business of Floriculture, Agriculture, Food processing and Information technology (IT). The Floriculture products consist of cut flowers, pot plants, seeds bulbs, rooted cuttings and dried flowers. Its Agriculture business produces cereal crops like maize, corn, sugarcane, and oilseeds. The Food processing business specializes in gherkin processing such as bay valley foods, mount olive, vlassic, heinz, and lidl. The IT business offers customized e-commerce solutions to companies dealing with perishable goods and commodities, paper industries, and government agencies.