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Xtera Communications (Xtera Communications) Cash Conversion Cycle : 117.61 (As of Jun. 2016)


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What is Xtera Communications Cash Conversion Cycle?

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

Xtera Communications's Days Sales Outstanding for the three months ended in Jun. 2016 was 152.87.
Xtera Communications's Days Inventory for the three months ended in Jun. 2016 was 59.15.
Xtera Communications's Days Payable for the three months ended in Jun. 2016 was 94.41.
Therefore, Xtera Communications's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2016 was 117.61.


Xtera Communications Cash Conversion Cycle Historical Data

The historical data trend for Xtera Communications'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.

Xtera Communications Cash Conversion Cycle Chart

Xtera Communications Annual Data
Trend Sep13 Sep14 Sep15
Cash Conversion Cycle
164.66 237.89 55.36

Xtera Communications Quarterly Data
Sep13 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only 12.41 16.87 28.22 41.56 117.61

Competitive Comparison of Xtera Communications's Cash Conversion Cycle

For the Communication Equipment subindustry, Xtera Communications'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.


Xtera Communications's Cash Conversion Cycle Distribution in the Hardware Industry

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

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



Xtera Communications 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.

Xtera Communications's Cash Conversion Cycle for the fiscal year that ended in Sep. 2015 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=44.07+74.47-63.18
=55.36

Xtera Communications's Cash Conversion Cycle for the quarter that ended in Jun. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=152.87+59.15-94.41
=117.61

* 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.


Xtera Communications  (OTCPK:XCOMQ) 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.


Xtera Communications Cash Conversion Cycle Related Terms

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


Xtera Communications (Xtera Communications) Business Description

Traded in Other Exchanges
N/A
Address
500 West Bethany Drive, Suite 100, Allen, TX, USA, 75013
Xtera Communications Inc is a provider of optical transport solutions. It sells its optical transport solutions to telecommunications service providers, content service providers, enterprises and government entities across the world to support their deployments of long-haul terrestrial and submarine optical cable networks. Its optical networking solutions are designed to offer reach and capacity for intermediate sites between end-points of long-haul networks. Its primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a spectrum of products within the optical networking industry. The company offers hardware, software and turnkey solutions.
Executives
Arch Venture Partners Vi Llc 10 percent owner C/O ARCH VENTURE PARTNERS, 8725 W. HIGGINS RD. #290, CHICAGO IL 60631
Keith Crandell 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Robert Nelsen 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Clinton Bybee director, 10 percent owner 8755 W. HIGGINS ROAD, SUITE 1025, CHICAGO IL 60631
Arch Venture Partners Vi Lp 10 percent owner C/O ARCH VENTURE PARTNERS, 8755 W. HIGGINS RD #1025, CHICAGO IL 60631
Arch Venture Fund Vi Lp 10 percent owner 8755 W HIGGINS RD, STE 1025, CHICAGO IL 60631
Peter J Barris 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
New Enterprise Associates 9 L P 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Nea Partners 9 L P 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Wellcome Trust Ltd 10 percent owner 215 EUSTON ROAD LONDON X0 NW1 2BE
John Mclaren director 4300 WILSON BOULEVARD, ARLINGTON VA 22203
Barry A Fromberg director DEAN FOODS COMPANY, 2515 MCKINNEY AVENUE, SUITE 1200, DALLAS TX 75201
Clifford H Higgerson director 525 UNIVERSITY AVENUE, SUITE 600, PALO ALTO CA 94301
Joseph R Chinnici officer: EVP, CFO, Secretary 1201 WINTERSON ROAD, LINTHICUM MD 21090
Kevin J Martin director ONE RIVERFRONT PLAZA, CORNING NY 14831

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