Derwent London (LSE:DLN) Cash Conversion Cycle : 219.29 (As of Dec. 2023)

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What is Derwent London Cash Conversion Cycle?

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

Derwent London's Days Sales Outstanding for the six months ended in Dec. 2023 was 16.1.
Derwent London's Days Inventory for the six months ended in Dec. 2023 was 317.25.
Derwent London's Days Payable for the six months ended in Dec. 2023 was 114.06.
Therefore, Derwent London's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 219.29.

Derwent London Cash Conversion Cycle Historical Data

The historical data trend for Derwent London'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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Derwent London Cash Conversion Cycle Chart

Derwent London Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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276.04

132.76

167.23

167.46

148.95

Derwent London Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial															122.59	206.61	139.78	154.50	219.29

Competitive Comparison of Derwent London's Cash Conversion Cycle

For the REIT - Office subindustry, Derwent London'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.

Derwent London's Cash Conversion Cycle Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Derwent London's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Derwent London's Cash Conversion Cycle falls into.

Derwent London 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.

Derwent London's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	10.5	+	278.41	-	139.96
	=	148.95

Derwent London'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
	=	16.1	+	317.25	-	114.06
	=	219.29

Derwent London (LSE:DLN) 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.

Derwent London Cash Conversion Cycle Related Terms

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Derwent London (LSE:DLN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Derwent London PLC (LSE:DLN) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

DWVYF:USA DLNl:UK DVK:Germany

Address

25 Savile Row, London, GBR, W1S 2ER

Website

https://www.derwentlondon.com

Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.