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Sycamore Networks (Sycamore Networks) Cash Conversion Cycle : 247.28 (As of Jan. 2013)


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What is Sycamore Networks Cash Conversion Cycle?

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

Sycamore Networks's Days Sales Outstanding for the three months ended in Jan. 2013 was 68.22.
Sycamore Networks's Days Inventory for the three months ended in Jan. 2013 was 204.22.
Sycamore Networks's Days Payable for the three months ended in Jan. 2013 was 25.16.
Therefore, Sycamore Networks's Cash Conversion Cycle (CCC) for the three months ended in Jan. 2013 was 247.28.


Sycamore Networks Cash Conversion Cycle Historical Data

The historical data trend for Sycamore Networks'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.

Sycamore Networks Cash Conversion Cycle Chart

Sycamore Networks Annual Data
Trend Jul03 Jul04 Jul05 Jul06 Jul07 Jul08 Jul09 Jul10 Jul11 Jul12
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 147.88 224.44 201.47 233.17 179.56

Sycamore Networks Quarterly Data
Apr08 Jul08 Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13
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 220.50 211.85 137.35 191.54 247.28

Competitive Comparison of Sycamore Networks's Cash Conversion Cycle

For the Communication Equipment subindustry, Sycamore Networks'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.


Sycamore Networks's Cash Conversion Cycle Distribution in the Hardware Industry

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

* The bar in red indicates where Sycamore Networks's Cash Conversion Cycle falls into.



Sycamore Networks 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.

Sycamore Networks's Cash Conversion Cycle for the fiscal year that ended in Jul. 2012 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=52.72+150.06-23.22
=179.56

Sycamore Networks's Cash Conversion Cycle for the quarter that ended in Jan. 2013 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=68.22+204.22-25.16
=247.28

* 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.


Sycamore Networks  (OTCPK:SCMR) 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.


Sycamore Networks Cash Conversion Cycle Related Terms

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Sycamore Networks (Sycamore Networks) Business Description

Traded in Other Exchanges
N/A
Address
Sycamore Networks Inc was incorporated under the laws of the State of Delaware on February 17, 1998. The Company develops and markets Intelligent Bandwidth Management solutions for fixed line and mobile network operators worldwide and provides services associated with such products.
Executives
Robert E Donahue director
John W Gerdelman director C/O SYCAMORE NETWORKS INC, 220 MILL RD, CHELMSFORD MA 01824
Alan Cormier officer: General Counsel and Secretary 220 MILL ROAD, CHELMSFORD MA 01824