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Food Gate Trading Co (SAU:9562) Cash Conversion Cycle : -7.29 (As of Dec. 2024)


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What is Food Gate Trading Co Cash Conversion Cycle?

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

Food Gate Trading Co's Days Sales Outstanding for the six months ended in Dec. 2024 was 3.89.
Food Gate Trading Co's Days Inventory for the six months ended in Dec. 2024 was 16.95.
Food Gate Trading Co's Days Payable for the six months ended in Dec. 2024 was 28.13.
Therefore, Food Gate Trading Co's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2024 was -7.29.


Food Gate Trading Co Cash Conversion Cycle Historical Data

The historical data trend for Food Gate Trading Co'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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Food Gate Trading Co Cash Conversion Cycle Chart

Food Gate Trading Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
- -35.61 -4.85 -2.67

Food Gate Trading Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Cash Conversion Cycle Get a 7-Day Free Trial - - -4.99 -8.54 -7.29

Competitive Comparison of Food Gate Trading Co's Cash Conversion Cycle

For the Restaurants subindustry, Food Gate Trading Co'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.


Food Gate Trading Co's Cash Conversion Cycle Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Food Gate Trading Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Food Gate Trading Co's Cash Conversion Cycle falls into.


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Food Gate Trading Co 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.

Food Gate Trading Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=3.62+17.53-23.82
=-2.67

Food Gate Trading Co's Cash Conversion Cycle for the quarter that ended in Dec. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=3.89+16.95-28.13
=-7.29

* 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.


Food Gate Trading Co  (SAU:9562) 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.


Food Gate Trading Co Cash Conversion Cycle Related Terms

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Food Gate Trading Co Business Description

Traded in Other Exchanges
N/A
Address
Wadi Al-Shati Street, PO Box. 12018, Alghadir, Riyadh, SAU, 13311
Food Gate Trading Co is a Saudi-owned food and beverage company, dedicated to creating signature dining concepts across a range of cuisines and culinary experiences at dining outlets.

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