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RIT Technologies (RIT Technologies) Cash Conversion Cycle : 205.59 (As of Sep. 2015)


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What is RIT Technologies Cash Conversion Cycle?

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

RIT Technologies's Days Sales Outstanding for the three months ended in Sep. 2015 was 137.96.
RIT Technologies's Days Inventory for the three months ended in Sep. 2015 was 131.89.
RIT Technologies's Days Payable for the three months ended in Sep. 2015 was 64.26.
Therefore, RIT Technologies's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2015 was 205.59.


RIT Technologies Cash Conversion Cycle Historical Data

The historical data trend for RIT Technologies'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.

RIT Technologies Cash Conversion Cycle Chart

RIT Technologies Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 170.14 149.80 216.76 185.66 307.37

RIT Technologies Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 361.04 370.38 184.53 166.64 205.59

Competitive Comparison of RIT Technologies's Cash Conversion Cycle

For the Communication Equipment subindustry, RIT Technologies'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.


RIT Technologies's Cash Conversion Cycle Distribution in the Hardware Industry

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

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



RIT Technologies 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.

RIT Technologies's Cash Conversion Cycle for the fiscal year that ended in Dec. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=152.17+255.13-99.93
=307.37

RIT Technologies's Cash Conversion Cycle for the quarter that ended in Sep. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=137.96+131.89-64.26
=205.59

* 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.


RIT Technologies  (OTCPK:RITT) 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.


RIT Technologies Cash Conversion Cycle Related Terms

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RIT Technologies (RIT Technologies) Business Description

Traded in Other Exchanges
N/A
Address
24 Raoul Wallenberg Street, Tel Aviv, ISR, 69719
RIT Technologies Ltd provides Intelligent Infrastructure Management solutions and develops indoor optical wireless technology solutions. The company's products include PatchView that provides security and network utilization for data centers, communication rooms and work space environments; and Beamcaster that provides IWON technology solutions mainly for open-space offices. Its Intelligent Infrastructure Management solutions are deployed in various organizations including data centers in the private sector, government agencies, financial institutions, airport authorities, healthcare and education institutions.
Executives
Marxe Austin W & Greenhouse David M 10 percent owner C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022

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