Lafarge (XPAR:LGNV) Cash Conversion Cycle : 33.08 (As of Jun. 2015)

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What is Lafarge Cash Conversion Cycle?

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

Lafarge's Days Sales Outstanding for the three months ended in Jun. 2015 was 44.35.
Lafarge's Days Inventory for the three months ended in Jun. 2015 was 54.15.
Lafarge's Days Payable for the three months ended in Jun. 2015 was 65.42.
Therefore, Lafarge's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2015 was 33.08.

Lafarge Cash Conversion Cycle Historical Data

The historical data trend for Lafarge'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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Lafarge Cash Conversion Cycle Chart

Lafarge Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Cash Conversion Cycle

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37.57

29.98

29.14

32.76

29.34

Lafarge Quarterly Data
	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15
Cash Conversion Cycle	Get a 7-Day Free Trial															31.93	33.69	35.55	38.37	33.08

Competitive Comparison of Lafarge's Cash Conversion Cycle

For the Building Materials subindustry, Lafarge'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.

Lafarge's Cash Conversion Cycle Distribution in the Building Materials Industry

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

* The bar in red indicates where Lafarge's Cash Conversion Cycle falls into.

Lafarge 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.

Lafarge's Cash Conversion Cycle for the fiscal year that ended in Dec. 2014 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	44.66	+	53.82	-	69.14
	=	29.34

Lafarge's Cash Conversion Cycle for the quarter that ended in Jun. 2015 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	44.35	+	54.15	-	65.42
	=	33.08

Lafarge (XPAR:LGNV) 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.

Lafarge Cash Conversion Cycle Related Terms

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Lafarge (XPAR:LGNV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Lafarge SA (XPAR:LGNV) » Definitions » Cash Conversion Cycle

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Address

Website

http://www.lafarge.com

Lafarge SA is a French limited liability company governed by French law and was founded in France in 1833 and was incorporated in 1884 under the name "J. et A. Pavin de Lafarge". The Company provides building materials. It is engaged in producing & selling cement, aggregates and ready-mix concrete, mostly under the "Lafarge" brand name. Its building products and solutions are used to construct and renovate homes, buildings and infrastructures. At year-end 2013, Company cement production operated, in 56 countries, 113 cement plants and 42 grinding plants, with an annual production capacity of 221 million tons. It also manages cement trading activities. The Company aggregates and concrete are used as raw materials for concrete, masonry, asphalt, and other industrial processes, and as base materials for roads, landï¬lls, and building. As of December 31, 2013, Company had approximately 437 production facilities for aggregates in 23 countries. The Company's Ready-mix concrete had 1,026 concrete plants in 33 countries as of December 31, 2014. The Company also produces asphalt in North America and the United Kingdom, and sells either as a stand-alone product, or in conjunction with contracted paving. The Company operates in Western Europe, North America, Central & Eastern Europe, Middle East & Africa, and Asia.

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