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Walmart Chile (XSGO:WMTCL) Cash Conversion Cycle : 12.66 (As of Jun. 2016)


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What is Walmart Chile Cash Conversion Cycle?

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

Walmart Chile's Days Sales Outstanding for the three months ended in Jun. 2016 was 35.73.
Walmart Chile's Days Inventory for the three months ended in Jun. 2016 was 46.82.
Walmart Chile's Days Payable for the three months ended in Jun. 2016 was 69.89.
Therefore, Walmart Chile's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2016 was 12.66.


Walmart Chile Cash Conversion Cycle Historical Data

The historical data trend for Walmart Chile'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.

Walmart Chile Cash Conversion Cycle Chart

Walmart Chile Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only -1.17 -4.03 0.48 8.50 12.52

Walmart Chile Quarterly Data
Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
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 3.84 0.95 6.06 12.75 12.66

Competitive Comparison of Walmart Chile's Cash Conversion Cycle

For the Department Stores subindustry, Walmart Chile'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.


Walmart Chile's Cash Conversion Cycle Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Walmart Chile's Cash Conversion Cycle distribution charts can be found below:

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



Walmart Chile 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.

Walmart Chile's Cash Conversion Cycle for the fiscal year that ended in Dec. 2015 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=34.33+45.11-66.92
=12.52

Walmart Chile's Cash Conversion Cycle for the quarter that ended in Jun. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=35.73+46.82-69.89
=12.66

* 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.


Walmart Chile  (XSGO:WMTCL) 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.


Walmart Chile Cash Conversion Cycle Related Terms

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Walmart Chile (XSGO:WMTCL) Business Description

Traded in Other Exchanges
N/A
Address
Av eduardo frei montalva 8301, Casilla, Santiago, CHL, 620
Walmart Chile SA is engaged in the operation of supermarkets. The company operates supermarkets under the brands lider, express lider, acuenta, ekono, central mayorista, and lider.cl. The firm also provides financial services which include offering financing to its customers through MasterCard and presto credit cards, requesting advances in cash, consumer loans, access to various products and services such as insurance, payment of accounts, and Real estate services which includes construction of new premises of the company and management of commercial premises that are part of company's supermarkets.

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