El Pollo Loco Holdings's Days Sales Outstanding for the
three
months ended in Mar. 2024 was 8.15.
El Pollo Loco Holdings's Days Inventory for the
three
months ended in Mar. 2024 was 1.84.
El Pollo Loco Holdings's Days Payable for the
three
months ended in Mar. 2024 was 12.29.
Therefore, El Pollo Loco Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2024 was -2.30.
El Pollo Loco Holdings Cash Conversion Cycle Historical Data
The historical data trend for El Pollo Loco Holdings'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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El Pollo Loco Holdings Cash Conversion Cycle Chart
Competitive Comparison of El Pollo Loco Holdings's Cash Conversion Cycle
For the Restaurants subindustry, El Pollo Loco Holdings'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.
El Pollo Loco Holdings's Cash Conversion Cycle Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, El Pollo Loco Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where El Pollo Loco Holdings's Cash Conversion Cycle falls into.
El Pollo Loco Holdings 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.
El Pollo Loco Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
El Pollo Loco Holdings (NAS:LOCO) 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.
El Pollo Loco Holdings Cash Conversion Cycle Related Terms
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El Pollo Loco Holdings (El Pollo Loco Holdings) Business Description
El Pollo Loco Holdings Inc operates and franchises hundreds of fast-casual chicken restaurants in the United States. Restaurant locations are typically free-standing and include drive-thrus, and menus include many low-priced options. Poultry is the company's largest food cost, accounting for roughly 38% of total food and paper cost, and the company manages that commodity price risk by using multiple suppliers and entering supply contracts of varying lengths depending on market conditions.
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