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Berkshire Homes (Berkshire Homes) Cash Conversion Cycle : -2.77 (As of Aug. 2015)


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What is Berkshire Homes Cash Conversion Cycle?

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

Berkshire Homes's Days Sales Outstanding for the three months ended in Aug. 2015 was 0.
Berkshire Homes's Days Inventory for the three months ended in Aug. 2015 was 0.
Berkshire Homes's Days Payable for the three months ended in Aug. 2015 was 2.77.
Therefore, Berkshire Homes's Cash Conversion Cycle (CCC) for the three months ended in Aug. 2015 was -2.77.


Berkshire Homes Cash Conversion Cycle Historical Data

The historical data trend for Berkshire Homes'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.

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Berkshire Homes Cash Conversion Cycle Chart

Berkshire Homes Annual Data
Trend Nov11 Nov12 Nov13 Nov14
Cash Conversion Cycle
- - - -1.65

Berkshire Homes Quarterly Data
Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15
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 192.88 1,015.04 -3.39 -1.16 -2.77

Competitive Comparison of Berkshire Homes's Cash Conversion Cycle

For the Real Estate Services subindustry, Berkshire Homes'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.


Berkshire Homes's Cash Conversion Cycle Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Berkshire Homes's Cash Conversion Cycle distribution charts can be found below:

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



Berkshire Homes 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.

Berkshire Homes's Cash Conversion Cycle for the fiscal year that ended in Nov. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0+0-1.65
=-1.65

Berkshire Homes's Cash Conversion Cycle for the quarter that ended in Aug. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+0-2.77
=-2.77

* 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.


Berkshire Homes  (OTCPK:BKSH) 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.


Berkshire Homes Cash Conversion Cycle Related Terms

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Berkshire Homes (Berkshire Homes) Business Description

Traded in Other Exchanges
N/A
Address
2375 East Camelback Road, Suite 600, Phoenix, AZ, USA, 85016
Berkshire Homes Inc is a United States based company engaged in acquiring and rehabilitating distressed residential real estate properties that are below market value, rehabilitates them, and then sell or lease them, depending on which approach will generate the highest return.

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