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CNH Industrial NV (WBO:CNHI) Cash Conversion Cycle : 655.85 (As of Mar. 2025)


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What is CNH Industrial NV Cash Conversion Cycle?

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

CNH Industrial NV's Days Sales Outstanding for the three months ended in Mar. 2025 was 560.76.
CNH Industrial NV's Days Inventory for the three months ended in Mar. 2025 was 179.14.
CNH Industrial NV's Days Payable for the three months ended in Mar. 2025 was 84.05.
Therefore, CNH Industrial NV's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2025 was 655.85.


CNH Industrial NV Cash Conversion Cycle Historical Data

The historical data trend for CNH Industrial NV'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.

CNH Industrial NV Cash Conversion Cycle Chart

CNH Industrial NV Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 522.96 315.45 282.72 361.47 488.29

CNH Industrial NV Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 529.86 473.97 578.72 511.19 655.85

Competitive Comparison of CNH Industrial NV's Cash Conversion Cycle

For the Farm & Heavy Construction Machinery subindustry, CNH Industrial NV'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.


CNH Industrial NV's Cash Conversion Cycle Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, CNH Industrial NV's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where CNH Industrial NV's Cash Conversion Cycle falls into.


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CNH Industrial NV 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.

CNH Industrial NV'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
=428.94+138.08-78.73
=488.29

CNH Industrial NV's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=560.76+179.14-84.05
=655.85

* 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.


CNH Industrial NV  (WBO:CNHI) 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.


CNH Industrial NV Cash Conversion Cycle Related Terms

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CNH Industrial NV Business Description

Traded in Other Exchanges
Address
Cranes Farm Road, Basildon, Essex, London, GBR, SS14 3AD
CNH Industrial is the world's second largest manufacturer of agricultural machinery (82% of industrial net sales) as well as a major player in construction equipment (18% of industrial net sales). Its Case and New Holland brands have served farmers for generations. Geographically, agriculture sales are 40% North America, 32% Europe, Middle East, and Africa, 18% South America, and 10% Asia-Pacific. CNH's products are available through a robust independent dealer network, which includes over 2,600 dealer and distribution locations and reach into 164 countries. The construction business leverages over 400 dealers. The company's captive finance arm provides retail financing to its customers as well as wholesale financing for dealers to maintain inventory, which supports sales.

CNH Industrial NV Headlines

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