GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » OPT Sciences Corp (OTCPK:OPST) » Definitions » Cash Conversion Cycle

OPT Sciences (OPT Sciences) Cash Conversion Cycle : 139.71 (As of Jul. 2015)


View and export this data going back to . Start your Free Trial

What is OPT Sciences Cash Conversion Cycle?

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

OPT Sciences's Days Sales Outstanding for the three months ended in Jul. 2015 was 62.56.
OPT Sciences's Days Inventory for the three months ended in Jul. 2015 was 85.53.
OPT Sciences's Days Payable for the three months ended in Jul. 2015 was 8.38.
Therefore, OPT Sciences's Cash Conversion Cycle (CCC) for the three months ended in Jul. 2015 was 139.71.


OPT Sciences Cash Conversion Cycle Historical Data

The historical data trend for OPT Sciences'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.

OPT Sciences Cash Conversion Cycle Chart

OPT Sciences Annual Data
Trend Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 104.14 104.72 109.86 136.83 130.22

OPT Sciences Quarterly Data
Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15
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 127.19 106.97 131.70 145.81 139.71

Competitive Comparison of OPT Sciences's Cash Conversion Cycle

For the Aerospace & Defense subindustry, OPT Sciences'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.


OPT Sciences's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, OPT Sciences's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where OPT Sciences's Cash Conversion Cycle falls into.



OPT Sciences 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.

OPT Sciences's Cash Conversion Cycle for the fiscal year that ended in Oct. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=65.69+71.77-7.24
=130.22

OPT Sciences's Cash Conversion Cycle for the quarter that ended in Jul. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=62.56+85.53-8.38
=139.71

* 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.


OPT Sciences  (OTCPK:OPST) 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.


OPT Sciences Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of OPT Sciences's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


OPT Sciences (OPT Sciences) Business Description

Traded in Other Exchanges
N/A
Address
1912 Bannard Street, Cinnaminson, NJ, USA, 08077
OPT Sciences Corp through its operating subsidiary O & S Research, manufactures precision optical components for the Aerospace Industry. It provides anti-glare optical coatings, panels for liquid crystal displays ("LCD"), LCD glass heaters, and electromagnetic interference shielding glass. In addition, it also offers glass cutting, grinding, and painting services. Geographically, the activities are performed in the United States and it derives revenue from product sales when products are shipped to customers.

OPT Sciences (OPT Sciences) Headlines

From GuruFocus

Opt-Sciences: Buy the Stock and Get the Business for Free

By Mark Lin Mark Lin 12-06-2012

OPST update: still cheap, and growing fast!

By whopper investments whopper investments 09-18-2012

Opt-Sciences $OPST- Follow Up

By whopper investments whopper investments 02-01-2012