Deswell Industries (Deswell Industries) Cash Conversion Cycle : 131.27 (As of Sep. 2023)

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What is Deswell Industries Cash Conversion Cycle?

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

Deswell Industries's Days Sales Outstanding for the six months ended in Sep. 2023 was 78.61.
Deswell Industries's Days Inventory for the six months ended in Sep. 2023 was 96.45.
Deswell Industries's Days Payable for the six months ended in Sep. 2023 was 43.79.
Therefore, Deswell Industries's Cash Conversion Cycle (CCC) for the six months ended in Sep. 2023 was 131.27.

Deswell Industries Cash Conversion Cycle Historical Data

The historical data trend for Deswell Industries'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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Deswell Industries Cash Conversion Cycle Chart

Deswell Industries Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Cash Conversion Cycle

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122.76

114.94

113.53

122.17

148.91

Deswell Industries Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Cash Conversion Cycle	Get a 7-Day Free Trial															116.29	124.35	142.70	175.10	131.27

Competitive Comparison of Deswell Industries's Cash Conversion Cycle

For the Electronic Components subindustry, Deswell Industries'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.

Deswell Industries's Cash Conversion Cycle Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Deswell Industries's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Deswell Industries's Cash Conversion Cycle falls into.

Deswell Industries 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.

Deswell Industries's Cash Conversion Cycle for the fiscal year that ended in Mar. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	79.99	+	116.42	-	47.5
	=	148.91

Deswell Industries's Cash Conversion Cycle for the quarter that ended in Sep. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	78.61	+	96.45	-	43.79
	=	131.27

Deswell Industries (NAS:DSWL) 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.

Deswell Industries Cash Conversion Cycle Related Terms

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Deswell Industries (Deswell Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Deswell Industries Inc (NAS:DSWL) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

DW2:Germany

Address

10B, Edificio Associacao Industrial De Macau, No. 32-36 Rua do Comandante Mata e Oliveira, Macao, MAC

Website

https://www.deswell.com

Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.