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Koninklijke DSM NV (Koninklijke DSM NV) Cash Conversion Cycle : 121.75 (As of Dec. 2022)


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What is Koninklijke DSM NV Cash Conversion Cycle?

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

Koninklijke DSM NV's Days Sales Outstanding for the six months ended in Dec. 2022 was 67.95.
Koninklijke DSM NV's Days Inventory for the six months ended in Dec. 2022 was 143.28.
Koninklijke DSM NV's Days Payable for the six months ended in Dec. 2022 was 89.48.
Therefore, Koninklijke DSM NV's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2022 was 121.75.


Koninklijke DSM NV Cash Conversion Cycle Historical Data

The historical data trend for Koninklijke DSM 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.

Koninklijke DSM NV Cash Conversion Cycle Chart

Koninklijke DSM NV Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 92.37 116.72 107.76 134.21 124.40

Koninklijke DSM NV Semi-Annual Data
Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22
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 65.75 132.20 135.21 130.53 121.75

Competitive Comparison of Koninklijke DSM NV's Cash Conversion Cycle

For the Specialty Chemicals subindustry, Koninklijke DSM 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.


Koninklijke DSM NV's Cash Conversion Cycle Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Koninklijke DSM NV's Cash Conversion Cycle distribution charts can be found below:

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



Koninklijke DSM 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.

Koninklijke DSM NV's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=70.02+153.34-98.96
=124.40

Koninklijke DSM NV's Cash Conversion Cycle for the quarter that ended in Dec. 2022 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=67.95+143.28-89.48
=121.75

* 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.


Koninklijke DSM NV  (OTCPK:KDSKF) 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.


Koninklijke DSM NV Cash Conversion Cycle Related Terms

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Koninklijke DSM NV (Koninklijke DSM NV) Business Description

Traded in Other Exchanges
N/A
Address
Het Overloon 1, P.O. Box 6500, Heerlen, LI, NLD, 6411 TE
Koninklijke DSM NV is a global, purpose-led company in Health, Nutrition, and Bioscience, applying science to improve the health of people, animals, and the planet. The company delivers innovative business solutions for human and animal nutrition, personal care and aroma, medical devices, green products and applications, new mobility, and connectivity. The company's segment includes Animal Nutrition & Health (ANH), Health, Nutrition & Care (HNC), and Food & Beverage (F&B), where the majority of its revenue is generated from Animal Nutrition & Health (ANH).

Koninklijke DSM NV (Koninklijke DSM NV) Headlines

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