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Hollysys Automation Technologies (Hollysys Automation Technologies) Cash Conversion Cycle : 106.78 (As of Sep. 2023)


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What is Hollysys Automation Technologies Cash Conversion Cycle?

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

Hollysys Automation Technologies's Days Sales Outstanding for the three months ended in Sep. 2023 was 149.17.
Hollysys Automation Technologies's Days Inventory for the three months ended in Sep. 2023 was 78.14.
Hollysys Automation Technologies's Days Payable for the three months ended in Sep. 2023 was 120.53.
Therefore, Hollysys Automation Technologies's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2023 was 106.78.


Hollysys Automation Technologies Cash Conversion Cycle Historical Data

The historical data trend for Hollysys Automation Technologies'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.

Hollysys Automation Technologies Cash Conversion Cycle Chart

Hollysys Automation Technologies Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 117.88 119.93 105.88 104.41 108.01

Hollysys Automation Technologies Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
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 Premium Member Only Premium Member Only 118.99 83.79 132.97 117.69 106.78

Competitive Comparison of Hollysys Automation Technologies's Cash Conversion Cycle

For the Electrical Equipment & Parts subindustry, Hollysys Automation Technologies'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.


Hollysys Automation Technologies's Cash Conversion Cycle Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Hollysys Automation Technologies's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Hollysys Automation Technologies's Cash Conversion Cycle falls into.



Hollysys Automation Technologies 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.

Hollysys Automation Technologies's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=157.57+70.94-120.5
=108.01

Hollysys Automation Technologies'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
=149.17+78.14-120.53
=106.78

* 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.


Hollysys Automation Technologies  (NAS:HOLI) 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.


Hollysys Automation Technologies Cash Conversion Cycle Related Terms

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Hollysys Automation Technologies (Hollysys Automation Technologies) Business Description

Traded in Other Exchanges
Address
No. 2 Disheng Middle Road, Beijing Economic-Technological Development Area, Beijing, CHN, 100176
Hollysys Automation Technologies Ltd is a China-based company that provides automation and control technologies and products. The company operates through three segments. Its IA segment supplies solutions including third-party hardware-centric products, proprietary software products, and others. The Rail segment supplies train control center and automation train protection to the rail and subway industries. The M&E segment consists of its two Southeast Asia-based subsidiaries that provide mechanical and electrical solutions. Hollysys Automation Technologies generates most of its sales from the Chinese domestic market.