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Gigamon (FRA:NGM) Cash Conversion Cycle : 145.67 (As of Sep. 2017)


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What is Gigamon Cash Conversion Cycle?

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

Gigamon's Days Sales Outstanding for the three months ended in Sep. 2017 was 80.15.
Gigamon's Days Inventory for the three months ended in Sep. 2017 was 96.76.
Gigamon's Days Payable for the three months ended in Sep. 2017 was 31.24.
Therefore, Gigamon's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2017 was 145.67.


Gigamon Cash Conversion Cycle Historical Data

The historical data trend for Gigamon'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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Gigamon Cash Conversion Cycle Chart

Gigamon Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Cash Conversion Cycle
Get a 7-Day Free Trial 117.35 63.63 79.57 75.02 92.16

Gigamon Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
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 77.21 100.57 126.86 135.32 145.67

Competitive Comparison of Gigamon's Cash Conversion Cycle

For the Communication Equipment subindustry, Gigamon'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.


Gigamon's Cash Conversion Cycle Distribution in the Hardware Industry

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

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



Gigamon 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.

Gigamon's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=71.43+50.08-29.35
=92.16

Gigamon's Cash Conversion Cycle for the quarter that ended in Sep. 2017 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=80.15+96.76-31.24
=145.67

* 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.


Gigamon  (FRA:NGM) 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.


Gigamon Cash Conversion Cycle Related Terms

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


Gigamon (FRA:NGM) Business Description

Industry
Traded in Other Exchanges
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Gigamon Inc develops designs and sells solutions and products that deliver visibility of traffic across networks. It serves global enterprises, service providers and governments.

Gigamon (FRA:NGM) Headlines

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