Deterra Royalties (ASX:DRR) Cash Conversion Cycle : 104.14 (As of Dec. 2023)

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What is Deterra Royalties Cash Conversion Cycle?

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

Deterra Royalties's Days Sales Outstanding for the six months ended in Dec. 2023 was 104.14.
Deterra Royalties's Days Inventory for the six months ended in Dec. 2023 was .
Deterra Royalties's Days Payable for the six months ended in Dec. 2023 was .
Therefore, Deterra Royalties's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 104.14.

Deterra Royalties Cash Conversion Cycle Historical Data

The historical data trend for Deterra Royalties'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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Deterra Royalties Cash Conversion Cycle Chart

Deterra Royalties Annual Data

Trend

Jun21

Jun22

Jun23

Cash Conversion Cycle

138.06

115.64

148.06

Deterra Royalties Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial			86.63	77.49	150.47	81.59	104.14

Competitive Comparison of Deterra Royalties's Cash Conversion Cycle

For the Other Industrial Metals & Mining subindustry, Deterra Royalties'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.

Deterra Royalties's Cash Conversion Cycle Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Deterra Royalties's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Deterra Royalties's Cash Conversion Cycle falls into.

Deterra Royalties 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.

Deterra Royalties's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	148.06	+		-
	=	148.06

Deterra Royalties's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	104.14	+		-
	=	104.14

Deterra Royalties (ASX:DRR) 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.

Deterra Royalties Cash Conversion Cycle Related Terms

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Deterra Royalties (ASX:DRR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Deterra Royalties Ltd (ASX:DRR) » Definitions » Cash Conversion Cycle

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Traded in Other Exchanges

DETRF:USA

Address

140 St Georges Terrace, Level 16, Perth, WA, AUS, 6000

Website

https://www.iluka.com

Deterra Royalties was spun out from Iluka Resources in October 2020 with Iluka retaining a 20% interest. Its only material income generating asset is a royalty covering iron ore produced by BHP from the Mining Area C royalty area, located in the Pilbara region of Western Australia. The royalty area includes the North Flank mine, producing approximately 60 million metric tons of iron ore a year, and the South Flank mine, expected to add a further 85 million metric tons a year by 2024 after producing first ore in 2021. The MAC royalty area also covers most of the Tandanya and Mudlark deposits, which BHP intends to develop in the longer term as part of its plan to operate the MAC production hub for at least 50 years. Deterra's strategy is to grow into a diversified royalty company.