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


What is Walmart Chile Cash Conversion Cycle?

Walmart Chile XSGO:WMTCL Cash Conversion Cycle is 12.66 as of Jun. 2016.

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  (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


Walmart Chile Cash Conversion Cycle Historical Data

* Premium members only.

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.

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

XSGO:WMTCL vs M, JWN, KSS: Cash Conversion Cycle Comparison

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 Cash Conversion Cycle vs 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 12.66 mean?
Walmart Chile (XSGO:WMTCL) has a Cash Conversion Cycle of 12.66 as of Jun. 2016. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Walmart Chile and its competitors.
Is Walmart Chile's Cash Conversion Cycle too high?
Walmart Chile's current Cash Conversion Cycle is 12.66. The Retail - Cyclical industry median Cash Conversion Cycle is 69.06. Walmart Chile's value of 12.66 is 81.7% below this industry median.
How does Walmart Chile's Cash Conversion Cycle compare to M and JWN?
Walmart Chile's Cash Conversion Cycle of 12.66 can be compared against companies in the Retail - Cyclical industry. The industry median Cash Conversion Cycle is 69.06. Walmart Chile's value of 12.66 is 81.7% below 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 Retail - Cyclical company?
The median Cash Conversion Cycle among Retail - Cyclical companies is 69.06, based on 1,120 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. Walmart Chile's current Cash Conversion Cycle of 12.66 is 81.7% below 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 Walmart Chile and its competitors. For the Retail - Cyclical industry, the median Cash Conversion Cycle is 69.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Walmart Chile's current Cash Conversion Cycle is 12.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Walmart Chile stock overvalued right now?
Walmart Chile (XSGO:WMTCL) has a current Cash Conversion Cycle of 12.66. The current Cash Conversion Cycle is 12.66 and 81.7% below the Retail - Cyclical industry median of 69.06. 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 Walmart Chile (XSGO:WMTCL), the current Cash Conversion Cycle is 12.66 as of Jun. 2016. 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.

Walmart Chile Business Description

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.