![]() 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. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless. 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.ĬCC is most effective with retail-type companies, which have inventories that are sold to customers. Generally, the lower this number is, the better for the company. Tera Software (BOM:533982) Cash Conversion Cycle Explanation Payments to Suppliers for Goods and Services.Other Cash Receipts from Operating Activities.Other Cash Payments from Operating Activities.Cash Received from Insurance Activities.Cash Receipts from Securities Related Activities.Cash Receipts from Operating Activities.Cash Receipts from Fees and Commissions.Cash Receipts from Deposits by Banks and Customers.Cash Payments for Deposits by Banks and Customers.Cash from Discontinued Operating Activities.Cash From Discontinued Investing Activities.Short-Term Debt & Capital Lease Obligation.Other Liabilities for Insurance Companies.Long-Term Debt & Capital Lease Obligation.Inventories, Raw Materials & Components.Cash, Cash Equivalents, Marketable Securities.Accumulated other comprehensive income (loss).Accounts Payable & Accrued Expense for Financial Companies.Depreciation, Depletion and Amortization.Margin of Safety % (DCF Dividends Based).Margin of Safety % (DCF Earnings Based).Float Percentage Of Total Shares Outstanding.
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