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Aarti Surfactants (BOM:543210) Cash Conversion Cycle : 64.16 (As of Mar. 2024)


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What is Aarti Surfactants Cash Conversion Cycle?

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

Aarti Surfactants's Days Sales Outstanding for the three months ended in Mar. 2024 was 40.35.
Aarti Surfactants's Days Inventory for the three months ended in Mar. 2024 was 74.02.
Aarti Surfactants's Days Payable for the three months ended in Mar. 2024 was 50.21.
Therefore, Aarti Surfactants's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 64.16.


Aarti Surfactants Cash Conversion Cycle Historical Data

The historical data trend for Aarti Surfactants'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.

Aarti Surfactants Cash Conversion Cycle Chart

Aarti Surfactants Annual Data
Trend Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Cash Conversion Cycle
Get a 7-Day Free Trial 61.08 43.67 34.74 46.01 63.29

Aarti Surfactants Quarterly Data
Mar19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 52.87 56.35 79.62 82.79 64.16

Competitive Comparison of Aarti Surfactants's Cash Conversion Cycle

For the Specialty Chemicals subindustry, Aarti Surfactants'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.


Aarti Surfactants's Cash Conversion Cycle Distribution in the Chemicals Industry

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

* The bar in red indicates where Aarti Surfactants's Cash Conversion Cycle falls into.



Aarti Surfactants 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.

Aarti Surfactants's Cash Conversion Cycle for the fiscal year that ended in Mar. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=41.91+72.15-50.77
=63.29

Aarti Surfactants's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=40.35+74.02-50.21
=64.16

* 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.


Aarti Surfactants  (BOM:543210) 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.


Aarti Surfactants Cash Conversion Cycle Related Terms

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Aarti Surfactants (BOM:543210) Business Description

Traded in Other Exchanges
Address
Mulund-Goregaon Link Road, 2nd Floor, Unit 202, Plot 71, Udyog Kshetra, L.B.S. Marg, Mulund (West), Mumbai, MH, IND, 400 080
Aarti Surfactants Ltd is the producer of ionic and non-ionic surfactants and specialty products, serving Home and Personal Care, Industrial Applications, and the Agro and Oil industries. The company's product portfolio includes Surfactants, Mild surfactants, Rheology modifiers, Pearlising agents, UV filters, Syndet and soap bases, and Active ingredients, as well as conditioning agents, blends, proteins, and quats. Geographically the group has a business presence in India and Outside India, of which a majority of its revenue is derived from India. The products of the group have application in consumer-centric personal care and home care products, including, inter alia, skin care, oral care, hair care, cosmetics, toiletries and detergent products.

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