Sonic (SONC) Cash Conversion Cycle : 6.93 (As of Aug. 2018)

View and export this data going back to 1991. Start your Free Trial

What is Sonic Cash Conversion Cycle?

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

Sonic's Days Sales Outstanding for the three months ended in Aug. 2018 was 16.83.
Sonic's Days Inventory for the three months ended in Aug. 2018 was 1.9.
Sonic's Days Payable for the three months ended in Aug. 2018 was 11.8.
Therefore, Sonic's Cash Conversion Cycle (CCC) for the three months ended in Aug. 2018 was 6.93.

Sonic Cash Conversion Cycle Historical Data

The historical data trend for Sonic'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.

Sonic Cash Conversion Cycle Chart

Sonic Annual Data

Trend

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Aug18

Cash Conversion Cycle

Get a 7-Day Free Trial

-0.92

-0.86

0.84

2.05

3.27

Sonic Quarterly Data
	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17	Feb18	May18	Aug18
Cash Conversion Cycle	Get a 7-Day Free Trial															8.35	2.30	-0.13	-6.71	6.93

Competitive Comparison of Sonic's Cash Conversion Cycle

For the Restaurants subindustry, Sonic'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.

Sonic's Cash Conversion Cycle Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Sonic's Cash Conversion Cycle distribution charts can be found below:

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

Sonic 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.

Sonic's Cash Conversion Cycle for the fiscal year that ended in Aug. 2018 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	17.13	+	3.7	-	17.56
	=	3.27

Sonic's Cash Conversion Cycle for the quarter that ended in Aug. 2018 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	16.83	+	1.9	-	11.8
	=	6.93

Sonic (NAS:SONC) 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.

Sonic Cash Conversion Cycle Related Terms

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

Sonic (SONC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Sonic Corp (NAS:SONC) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.sonicdrivein.com

Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.

Executives

Steven A Davis	director	3776 SOUTH HIGH ST, COLUMBUS OH 43207
Lauren R Hobart	director	345 COURT STREET, CORAOPOLIS PA 15275
Tony Bartel	director	625 WESTPORT PARKWAY, GRAPEVINE TX 76051
Kathy L Taylor	director	C/O FREDERIC DORWART LAWYERS, 124 EAST FOURTH STREET, TULSA OK 74103
Pedro Claudia San	officer: President	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Kate S Lavelle	director	24089 3RD STREET, FAIRHOPE AL 36532
Federico F Pena	director	711 HIGH STREET, DES MOINES IA 50392-0300
J Larry Nichols	director	DEVON ENERGY CORP, 20 NORTH BROADWAY STE 1500, OKLAHOMA CITY OK 73102-8260
Southeastern Asset Management Inc/tn/	10 percent owner	6410 POPLAR AVENUE, SUITE 900, MEMPHIS TN 38119
Longleaf Partners Funds Trust	10 percent owner	C/O SOUTHEASTERN ASSET MANAGEMENT, 6410 POPLAR AVE, SUITE 900, MEMPHIS TN 38119
Todd Whitney Smith	officer: President and CMO	300 JOHNNY BENCH DRIVE, OKLAHOMA CITY OK 73104
Craig Jeffrey Miller	officer: Former Officer of Subsidiary	5008 HARTRIDGE WAY, GREENSBORO NC 27407
Robert M Rosenberg	director
Michael J Maples	director	2208 WINDSOR ROAD, AUSTIN TX 78703
Douglas N Benham	director