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Avacta Group (LSE:AVCT) Cash Conversion Cycle : -38.92 (As of Jun. 2024)


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What is Avacta Group Cash Conversion Cycle?

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

Avacta Group's Days Sales Outstanding for the six months ended in Jun. 2024 was 87.79.
Avacta Group's Days Inventory for the six months ended in Jun. 2024 was 76.
Avacta Group's Days Payable for the six months ended in Jun. 2024 was 202.71.
Therefore, Avacta Group's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2024 was -38.92.


Avacta Group Cash Conversion Cycle Historical Data

The historical data trend for Avacta Group'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.

Avacta Group Cash Conversion Cycle Chart

Avacta Group Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -194.75 -91.20 -26.45 -18.87 14.98

Avacta Group Semi-Annual Data
Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -1,672.98 -19.61 -81.22 -37.86 -38.92

Competitive Comparison of Avacta Group's Cash Conversion Cycle

For the Biotechnology subindustry, Avacta Group'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.


Avacta Group's Cash Conversion Cycle Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Avacta Group's Cash Conversion Cycle distribution charts can be found below:

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



Avacta Group 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.

Avacta Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=44.65+64.86-94.53
=14.98

Avacta Group's Cash Conversion Cycle for the quarter that ended in Jun. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=87.79+76-202.71
=-38.92

* 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.


Avacta Group  (LSE:AVCT) 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.


Avacta Group Cash Conversion Cycle Related Terms

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Avacta Group Business Description

Traded in Other Exchanges
Address
Unit 20, Ash Way, Thorp Arch Estate, West Yorkshire, Wetherby, GBR, LS23 7FA
Avacta Group PLC is a United Kingdom-based biotechnology company. The company offers its products through three segments that are Diagnostics, Therapeutics, and Animal Health. The company is developing novel cancer immunotherapies combining its two proprietary platforms Affimer biotherapeutics and precision tumor-targeted chemotherapy. The company operates in the United Kingdom, France, South Korea, Rest of Europe, Asia, and North America.

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