What is Apple Cash Conversion Cycle?
Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.
Apple's Days Sales Outstanding for the three months ended in Jun. 2024 was 23.74.
Apple's Days Inventory for the three months ended in Jun. 2024 was 12.27.
Apple's Days Payable for the three months ended in Jun. 2024 was 92.37.
Therefore, Apple's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2024 was -56.36.
Apple Cash Conversion Cycle Historical Data
The historical data trend for Apple'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.
Apple Cash Conversion Cycle Chart
Apple Annual Data | ||||||||||||||||||||
Trend | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | ||||||||||
Cash Conversion Cycle | Get a 7-Day Free Trial | -73.76 | -60.54 | -52.90 | -62.43 | -70.92 |
Apple Quarterly Data | ||||||||||||||||||||
Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
Cash Conversion Cycle | Get a 7-Day Free Trial | -54.30 | -63.90 | -55.97 | -63.15 | -56.36 |
Competitive Comparison of Apple's Cash Conversion Cycle
For the Consumer Electronics subindustry, Apple'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.
Apple's Cash Conversion Cycle Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Apple's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Apple's Cash Conversion Cycle falls into.
Apple 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.
Apple's Cash Conversion Cycle for the fiscal year that ended in Sep. 2023 is calculated as
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 27.47 | + | 9.61 | - | 108 | |
= | -70.92 |
Apple's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:
Cash Conversion Cycle | = | Days Sales Outstanding | + | Days Inventory | - | Days Payable |
= | 23.74 | + | 12.27 | - | 92.37 | |
= | -56.36 |
* 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.
Apple(NAS:AAPL) 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.
Apple Cash Conversion Cycle Related Terms
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Apple Business Description
Industry
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Address
One Apple Park Way, Cupertino, CA, USA, 95014
Website
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Executives
Chris Kondo | officer: Principal Accounting Officer | 1 INFINITE LOOP, CUPERTINO CA 95014 |
Katherine L. Adams | officer: SVP, General Counsel | APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014 |
Luca Maestri | officer: Senior Vice President, CFO | 1 INFINITE LOOP, CUPERTINO CA 95014 |
Jeffrey E Williams | officer: COO | ONE INFINITE LOOP, CUPERTINO CA 95014 |
Deirdre O'brien | officer: Senior Vice President | ONE APPLE PARK WAY, CUPERTINO CA 95014 |
Timothy D Cook | director, officer: Chief Executive Officer | C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014 |
Arthur D Levinson | director | C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990 |
Alex Gorsky | director | JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933 |
Monica C Lozano | director | |
Angela J Ahrendts | officer: Senior Vice President | 1 INFINITE LOOP, CUPERTINO CA 95014 |
Johny Srouji | officer: Senior Vice President | 1 INFINITE LOOP, CUPERTINO CA 95014 |
Craig Federighi | officer: Senior Vice President | 807 11TH AVENUE, SUNNYVALE CA 94089 |
Daniel J. Riccio | officer: Senior Vice President | 1 INFINITE LOOP, CUPERTINO CA 95014 |
Philip W Schiller | officer: Senior Vice President | C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014 |
Susan Wagner | director | C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022 |
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