Management Consulting Group (LSE:MMC) Receivables Turnover: 3.42 (As of Dec. 2019)

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What is Management Consulting Group Receivables Turnover?

Management Consulting Group LSE:MMC -30.09% Receivables Turnover is 3.42 as of Dec. 2019. The stock has 3 warning signs investors should review.

The Receivables Turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by average Accounts Receivable. An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. Management Consulting Group's Revenue for the six months ended in Dec. 2019 was £15.95 Mil. Management Consulting Group's average Accounts Receivable for the six months ended in Dec. 2019 was £4.66 Mil. Hence, Management Consulting Group's Receivables Turnover for the six months ended in Dec. 2019 was 3.42.


Management Consulting Group  (LSE:MMC) Receivables Turnover Explanation

An efficient company has a higher accounts receivable turnover ratio while an inefficient company has a lower ratio. This metric is commonly used to compare companies within the same industry to check whether they are on par with their competitors.


Management Consulting Group Receivables Turnover Related Terms


Management Consulting Group Receivables Turnover Historical Data

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The historical data trend for Management Consulting Group's Receivables Turnover 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.

Management Consulting Group Receivables Turnover Chart

Management Consulting Group Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19
Receivables Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.75 4.57 13.57 11.30 11.04

Management Consulting Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19
Receivables Turnover 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 3.22 3.68 3.23 3.52 3.42

LSE:MMC vs INFO, VRSK, EFX: Receivables Turnover Comparison

For the Consulting Services subindustry, Management Consulting Group's Receivables Turnover, along with its competitors' market caps and Receivables Turnover 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.


Management Consulting Group Receivables Turnover vs Business Services Industry

For the Business Services industry and Industrials sector, Management Consulting Group's Receivables Turnover distribution charts can be found below:

* The bar in red indicates where Management Consulting Group's Receivables Turnover falls into.



Management Consulting Group Receivables Turnover Calculation

Receivables Turnover measures the number of times a company collects its average accounts receivable balance.

Management Consulting Group's Receivables Turnover for the fiscal year that ended in Dec. 2019 is calculated as

Receivables Turnover (A: Dec. 2019 )
=Revenue / Average Accounts Receivable
=Revenue (A: Dec. 2019 ) / ((Accounts Receivable (A: Dec. 2018 ) + Accounts Receivable (A: Dec. 2019 )) / count )
=33.2 / ((3.242 + 2.772) / 2 )
=33.2 / 3.007
=11.04

Management Consulting Group's Receivables Turnover for the quarter that ended in Dec. 2019 is calculated as

Receivables Turnover (Q: Dec. 2019 )
=Revenue / Average Accounts Receivable
=Revenue (Q: Dec. 2019 ) / ((Accounts Receivable (Q: Jun. 2019 ) + Accounts Receivable (Q: Dec. 2019 )) / count )
=15.949 / ((6.551 + 2.772) / 2 )
=15.949 / 4.6615
=3.42

* 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 Receivables Turnover →
What does a Receivables Turnover of 3.42 mean?
Management Consulting Group (LSE:MMC) has a Receivables Turnover of 3.42 as of Dec. 2019. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Management Consulting Group and its competitors.
Is Management Consulting Group's Receivables Turnover too high?
Management Consulting Group's current Receivables Turnover is 3.42. The Business Services industry median Receivables Turnover is 6.22. Management Consulting Group's value of 3.42 is 45% below this industry median.
How does Management Consulting Group's Receivables Turnover compare to INFO and VRSK?
Management Consulting Group's Receivables Turnover of 3.42 can be compared against companies in the Business Services industry. The industry median Receivables Turnover is 6.22. Management Consulting Group's value of 3.42 is 45% 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 Receivables Turnover for a Business Services company?
The median Receivables Turnover among Business Services companies is 6.22, based on 1,062 companies in the industry. Companies in the top quartile (top 25%) have a Receivables Turnover significantly above this median, while those in the bottom quartile fall well below. However, Receivables Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Management Consulting Group's current Receivables Turnover of 3.42 is 45% 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 Receivables Turnover mean?
A high Receivables Turnover can signal that a stock is expensive relative to its fundamentals. The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is calculated as Revenue divided by Average Accounts Receivable. View historical data on Management Consulting Group and its competitors. For the Business Services industry, the median Receivables Turnover is 6.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Management Consulting Group's current Receivables Turnover is 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Management Consulting Group stock overvalued right now?
Based on GuruFocus' analysis, Management Consulting Group (LSE:MMC) is currently considered Possible Value Trap. The current Receivables Turnover is 3.42 and 45% below the Business Services industry median of 6.22. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Receivables Turnover calculated?
Receivables Turnover is calculated from a company's financial statements. For Management Consulting Group (LSE:MMC), the current Receivables Turnover is 3.42 as of Dec. 2019. 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.

Management Consulting Group Business Description

Address 10 Warwick Lane, St. Paul’s House, 4th Floor, London, GBR, EC4M 7BP
Management Consulting Group PLC is engaged in providing professional services to various industries and sectors via the Proudfoot practice. Proudfoot, which is a professional service practice designs, implements and accelerates the operational transformation that realizes tomorrow's results today. The company serves various industries including manufacturing, natural resources, consumer packaged goods, transportation, automotive, building materials and heavy industry. It also provides market-specific local customization for Financial Services and Healthcare sectors. The company provides its services in the Americas, Europe among other regions, and generates a vast majority of its revenue from Europe.