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Linear Technology (Linear Technology) Cash Conversion Cycle : 118.77 (As of Dec. 2016)


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What is Linear Technology Cash Conversion Cycle?

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

Linear Technology's Days Sales Outstanding for the three months ended in Dec. 2016 was 37.34.
Linear Technology's Days Inventory for the three months ended in Dec. 2016 was 98.59.
Linear Technology's Days Payable for the three months ended in Dec. 2016 was 17.16.
Therefore, Linear Technology's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2016 was 118.77.


Linear Technology Cash Conversion Cycle Historical Data

The historical data trend for Linear Technology'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.

Linear Technology Cash Conversion Cycle Chart

Linear Technology Annual Data
Trend Jun07 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 121.70 124.62 117.38 118.19 129.17

Linear Technology Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 127.09 118.43 116.35 118.96 118.77

Competitive Comparison of Linear Technology's Cash Conversion Cycle

For the Semiconductors subindustry, Linear Technology'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.


Linear Technology's Cash Conversion Cycle Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Linear Technology's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Linear Technology's Cash Conversion Cycle falls into.



Linear Technology 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.

Linear Technology's Cash Conversion Cycle for the fiscal year that ended in Jun. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=43.16+104.63-18.62
=129.17

Linear Technology's Cash Conversion Cycle for the quarter that ended in Dec. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=37.34+98.59-17.16
=118.77

* 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.


Linear Technology  (NAS:LLTC) 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.


Linear Technology Cash Conversion Cycle Related Terms

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Linear Technology (Linear Technology) Business Description

Traded in Other Exchanges
N/A
Address
Linear Technology designs and manufactures standard high-performance analog integrated circuits for a diverse customer base spanning industrial, automotive, communications, and high-end consumer electronics. The firm offers thousands of analog products to tens of thousands of original equipment manufacturers globally. Most of its products support functions such as power management, data interface, and conversion. International markets account for the lion's share of Linear's revenue.
Executives
Steve Pietkiewicz officer: VP & GM Power Business Unit 1630 MCCARTHY BLVD., MILPITAS CA 95035
Swanson Robert H Jr director, officer: Executive Chair 1630 MCCARTHY BLVD, MILPITAS CA 95035
Lothar Maier director, officer: CEO 1630 MCCARTHY BLVD, MILPITAS CA 95035

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