Reynolds American (Reynolds American) Cash Conversion Cycle : 109.98 (As of Mar. 2017)

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What is Reynolds American Cash Conversion Cycle?

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

Reynolds American's Days Sales Outstanding for the three months ended in Mar. 2017 was 1.87.
Reynolds American's Days Inventory for the three months ended in Mar. 2017 was 123.18.
Reynolds American's Days Payable for the three months ended in Mar. 2017 was 15.07.
Therefore, Reynolds American's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2017 was 109.98.

Reynolds American Cash Conversion Cycle Historical Data

The historical data trend for Reynolds American'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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Reynolds American Cash Conversion Cycle Chart

Reynolds American Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Cash Conversion Cycle

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73.86

90.57

98.36

108.02

114.26

Reynolds American Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Cash Conversion Cycle	Get a 7-Day Free Trial															122.74	105.11	107.54	108.02	109.98

Competitive Comparison of Reynolds American's Cash Conversion Cycle

For the Tobacco subindustry, Reynolds American'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.

Reynolds American's Cash Conversion Cycle Distribution in the Tobacco Products Industry

For the Tobacco Products industry and Consumer Defensive sector, Reynolds American's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Reynolds American's Cash Conversion Cycle falls into.

Reynolds American 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.

Reynolds American's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	1.96	+	127.38	-	15.08
	=	114.26

Reynolds American's Cash Conversion Cycle for the quarter that ended in Mar. 2017 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	1.87	+	123.18	-	15.07
	=	109.98

Reynolds American (NYSE:RAI) 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.

Reynolds American Cash Conversion Cycle Related Terms

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Reynolds American (Reynolds American) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Tobacco Products » Reynolds American Inc (NYSE:RAI) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.reynoldsamerican.com

Reynolds American controls roughly one third of the U.S. cigarette market and is the second-largest domestic cigarette manufacturer behind Altria. Its brands include Camel, Pall Mall, and Newport. Reynolds also owns the Grizzly and Kodiak smokeless tobacco brands. Another subsidiary, Santa Fe Natural Tobacco, manufactures superpremium Natural American Spirit cigarettes. In 2013, Reynolds entered the electronic cigarette market with its Vuse brand, which captured a significant share of this small but growing market.

Executives

John J Zillmer	director	ARAMARK CORP, 1101 MARKET ST, PHILADELPHIA PA 19107
Debra Ann Crew	officer: President and CEO	STANLEY BLACK & DECKER, INC., 1000 STANLEY DRIVE, NEW BRITAIN CT 06053
Ronald S Rolfe	director	825 8TH AVENUE, 38TH FLOOR, NEW YORK NY 10019
Nowell Lionel L Iii	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Holly K Koeppel	director	401 NORTH MAIN STREET, WINSTON-SALEM NC 27101
Susan M. Cameron	director	C/O TUPPERWARE BRANDS CORP, PO BOX 2353, ORLANDO FL 32802-2353
Murray S Kessler	director	714 GREEN VALLEY ROAD, GREENSBORO NC 27408
Nana Mensah	director	1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Thomas C Wajnert	director	401 NORTH MAIN STREET, WINSTON SALEM NC 27102
Richard E Thornburgh	director	401 N. MAIN STREET, WINSTON-SALEM NC 27101
Nicholas V Scheele	director	FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
Betsy S Atkins	director
Joseph P Viviano	director	4351 GULF SHORE BLVD. N, 17N LERIVAGE, NAPLES FL 34103
Monteiro De Castro Antonio	director	BRITISH AMERICAN TOBACCO - GLOBE HOUSE, 4 TEMPLE PLACE, LONDON X0 WC2R2PG
Chain John T Jr	director	401 N. MAIN ST., C/O RJ REYNOLDS TOBACCO HOLDINGS, WINSTON SALEM NC 27102