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Algoma Steel Group (TSX:ASTL) Cash Conversion Cycle : 131.93 (As of Sep. 2024)


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What is Algoma Steel Group Cash Conversion Cycle?

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

Algoma Steel Group's Days Sales Outstanding for the three months ended in Sep. 2024 was 37.5.
Algoma Steel Group's Days Inventory for the three months ended in Sep. 2024 was 112.24.
Algoma Steel Group's Days Payable for the three months ended in Sep. 2024 was 17.81.
Therefore, Algoma Steel Group's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2024 was 131.93.


Algoma Steel Group Cash Conversion Cycle Historical Data

The historical data trend for Algoma Steel Group'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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Algoma Steel Group Cash Conversion Cycle Chart

Algoma Steel Group Annual Data
Trend Mar20 Mar21 Mar22 Mar23 Mar24
Cash Conversion Cycle
111.58 133.85 94.37 126.72 129.91

Algoma Steel Group Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 129.08 148.93 147.35 131.69 131.93

Competitive Comparison of Algoma Steel Group's Cash Conversion Cycle

For the Steel subindustry, Algoma Steel Group'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.


Algoma Steel Group's Cash Conversion Cycle Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Algoma Steel Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Algoma Steel Group's Cash Conversion Cycle falls into.



Algoma Steel Group 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.

Algoma Steel Group'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
=33.43+111.13-14.65
=129.91

Algoma Steel Group's Cash Conversion Cycle for the quarter that ended in Sep. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=37.5+112.24-17.81
=131.93

* 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.


Algoma Steel Group  (TSX:ASTL) 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.


Algoma Steel Group Cash Conversion Cycle Related Terms

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Algoma Steel Group Business Description

Traded in Other Exchanges
Address
105 West Street, Sault Ste., Marie, ON, CAN, P6A 7B4
Algoma Steel Group Inc is a Canadian company engaged in the production of clean and consistent light gauge steel. The company offers a range of hot and cold rolled steel sheet and plate products. The firm operates in a single segment of basic steel production including sheets, plates, slabs, and freights. The company's revenue is generated from contracts to produce, ship, and deliver steel products Geographically it serves Canada, the United States, and the rest of the world, whilst driving key revenue from domestic sales. The company generates the majority of its revenue from the sale of Steel sheets and strips.
Executives
Michael Allan Mcquade Director
Eric Stuart Rosenfeld Director
David Daniel Sgro Director