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Ruby Tuesday (Ruby Tuesday) Cash Conversion Cycle : 1.15 (As of Aug. 2017)


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What is Ruby Tuesday Cash Conversion Cycle?

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

Ruby Tuesday's Days Sales Outstanding for the three months ended in Aug. 2017 was 0.43.
Ruby Tuesday's Days Inventory for the three months ended in Aug. 2017 was 8.42.
Ruby Tuesday's Days Payable for the three months ended in Aug. 2017 was 7.7.
Therefore, Ruby Tuesday's Cash Conversion Cycle (CCC) for the three months ended in Aug. 2017 was 1.15.


Ruby Tuesday Cash Conversion Cycle Historical Data

The historical data trend for Ruby Tuesday'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.

* Premium members only.

Ruby Tuesday Cash Conversion Cycle Chart

Ruby Tuesday Annual Data
Trend May08 May09 May10 May11 May12 May13 May14 May15 May16 May17
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.05 2.29 -1.20 -0.31 0.18

Ruby Tuesday Quarterly Data
Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
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 -0.45 -1.34 -1.87 -0.94 1.15

Competitive Comparison of Ruby Tuesday's Cash Conversion Cycle

For the Restaurants subindustry, Ruby Tuesday'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.


Ruby Tuesday's Cash Conversion Cycle Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Ruby Tuesday's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Ruby Tuesday's Cash Conversion Cycle falls into.



Ruby Tuesday 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.

Ruby Tuesday's Cash Conversion Cycle for the fiscal year that ended in May. 2017 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0.39+8.78-8.99
=0.18

Ruby Tuesday's Cash Conversion Cycle for the quarter that ended in Aug. 2017 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0.43+8.42-7.7
=1.15

* 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.


Ruby Tuesday  (NYSE:RT) 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.


Ruby Tuesday Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Ruby Tuesday's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Ruby Tuesday (Ruby Tuesday) Business Description

Traded in Other Exchanges
N/A
Address
Ruby Tuesday Inc was incorporated in the state of Georgia. The first Ruby Tuesday(r) restaurant was opened in 1972 in Knoxville, Tennessee near the campus of the University of Tennessee. The Company owns, operates and franchises the Ruby Tuesday casual dining restaurant chain. The Company is subject to a variety of federal, state, and international laws governing franchise sales and the franchise relationship.
Executives
Rhonda J Parish officer: See Remarks 203 EAST MAINST P 12-02, SPARTANBURG SC 29319
Bernard Jr Lanigan director 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Cardwell F Lane Jr director C/O RUBY TUESDAY, INC., 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Stephen I Sadove director
James J Buettgen director, officer: President & Chief Exec Officer 150 WEST CHURCH AVE, MARYVILLE TN 37801
Jill Golder officer: EVP, Chief Financial Officer 305 HARTMANN DRIVE, LEBANON TN 37087
Scarlett May officer: SVP,Chief Legal Officer & Sec. 26901 MALIBU HILLS ROAD, CALABASAS HILLS CA 91301
Todd Burrowes officer: RT Concept Pres,Chief Ops Ofcr 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Matthew A Drapkin director 10 CORBIN DRIVE, 3RD FLOOR, DARIEN CT 06820
Michael O Moore officer: EVP - Chief Financial Officer 150 W CHURCH AVE, RUBY TUESDAY, INC., MARYVILLE TN 37801
Kimberly Grant officer: Pres.,Ruby Tuesday Concept 150 WEST CHURCH AVENUE, MARYVILLE TN 37801
Steven R Becker director 5525 NAKOMA DRIVE, DALLAS TX 75209
Beall Samuel E Iii director, officer: Chief Executive Officer RUBY TUESDAY INC 150 WEST CHURCH AVE MARYVILLE TN 37801
Donald R Ratajczak director THE HARTSFIELD COLONNADE, 4893 RIVERDALE RD STE 260, ATLANTA GA 30337
Haslam James A Iii director 165 MADISON AVENUE, MEMPHIS TN 38103

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