Tongda Smart Tech (Xiamen) Co (SZSE:001368) Cash Conversion Cycle : 23.90 (As of Mar. 2024)

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What is Tongda Smart Tech (Xiamen) Co Cash Conversion Cycle?

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

Tongda Smart Tech (Xiamen) Co's Days Sales Outstanding for the three months ended in Mar. 2024 was 68.98.
Tongda Smart Tech (Xiamen) Co's Days Inventory for the three months ended in Mar. 2024 was 56.79.
Tongda Smart Tech (Xiamen) Co's Days Payable for the three months ended in Mar. 2024 was 101.87.
Therefore, Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 23.90.

Tongda Smart Tech (Xiamen) Co Cash Conversion Cycle Historical Data

The historical data trend for Tongda Smart Tech (Xiamen) 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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Tongda Smart Tech (Xiamen) Co Cash Conversion Cycle Chart

Tongda Smart Tech (Xiamen) Co Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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-18.93

9.02

23.00

20.80

17.49

Tongda Smart Tech (Xiamen) Co Quarterly Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash Conversion Cycle	Get a 7-Day Free Trial									17.53	19.93	19.38	20.60	23.90

Competitive Comparison of Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle

For the Furnishings, Fixtures & Appliances subindustry, Tongda Smart Tech (Xiamen) 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.

Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle falls into.

Tongda Smart Tech (Xiamen) 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.

Tongda Smart Tech (Xiamen) Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	67.77	+	59.21	-	109.49
	=	17.49

Tongda Smart Tech (Xiamen) Co'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
	=	68.98	+	56.79	-	101.87
	=	23.90

Tongda Smart Tech (Xiamen) Co (SZSE:001368) 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.

Tongda Smart Tech (Xiamen) Co Cash Conversion Cycle Related Terms

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Tongda Smart Tech (Xiamen) Co (SZSE:001368) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » Tongda Smart Tech (Xiamen) Co Ltd (SZSE:001368) » Definitions » Cash Conversion Cycle

Traded in Other Exchanges

N/A

Address

No. 89 DingShan Middle Road, Dongfu Town, Fujian Province, Haicang District, Xiamen, CHN, 361027

Website

http://www.xmcz.cn

Tongda Smart Tech (Xiamen) Co Ltd is engaged in the research and development, production and sales of consumer products such as sports outdoor, home life, health care and others.

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