KDM Shipping's Days Sales Outstanding for the
six
months ended in Jun. 2018 was 39.09.
KDM Shipping's Days Inventory for the
six
months ended in Jun. 2018 was 1.18.
KDM Shipping's Days Payable for the
six
months ended in Jun. 2018 was 15.03.
Therefore, KDM Shipping's Cash Conversion Cycle (CCC) for the
six
months ended in Jun. 2018 was 25.24.
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.
KDM Shipping Cash Conversion Cycle Related Terms
KDM Shipping Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for KDM Shipping'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.
WAR:KDM vs ESEA, GLBS, SHIP: Cash Conversion Cycle Comparison
For the Marine Shipping subindustry, KDM Shipping'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.
KDM Shipping Cash Conversion Cycle vs Transportation Industry
For the Transportation industry and Industrials sector, KDM Shipping's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where KDM Shipping's Cash Conversion Cycle falls into.
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.
KDM Shipping's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 is calculated as
* 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.
KDM Shipping (WAR:KDM) has a Cash Conversion Cycle of 25.24 as of Jun. 2018. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on KDM Shipping and its competitors.
Is KDM Shipping's Cash Conversion Cycle too high?
KDM Shipping's current Cash Conversion Cycle is 25.24. The Transportation industry median Cash Conversion Cycle is 20.26. KDM Shipping's value of 25.24 is 24.6% above this industry median.
How does KDM Shipping's Cash Conversion Cycle compare to ESEA and GLBS?
KDM Shipping's Cash Conversion Cycle of 25.24 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. KDM Shipping's value of 25.24 is 24.6% above 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,000 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. KDM Shipping's current Cash Conversion Cycle of 25.24 is 24.6% above 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 KDM Shipping and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. KDM Shipping's current Cash Conversion Cycle is 25.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is KDM Shipping stock overvalued right now?
KDM Shipping (WAR:KDM) has a current Cash Conversion Cycle of 25.24. The current Cash Conversion Cycle is 25.24 and 24.6% above the Transportation industry median of 20.26. 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 KDM Shipping (WAR:KDM), the current Cash Conversion Cycle is 25.24 as of Jun. 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.
KDM Shipping PLC is engaged in the shipping industry. It mainly focuses on the bulk river-sea freight in the Black, Azov and Mediterranean Sea regions. In addition, it is engaged in cargo freight, ship repair, and trading in grain, corn, oil and barley. The principal cargo of the company includes Grain, Metal Scrap, Sunflower seed meal, Bran, Fertilizers, and Cement.
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