VECTr Systems (VECTr Systems) Cash Conversion Cycle : -1,300.32 (As of Sep. 2007)

View and export this data going back to . Start your Free Trial

What is VECTr Systems Cash Conversion Cycle?

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

VECTr Systems's Days Sales Outstanding for the three months ended in Sep. 2007 was 22.81.
VECTr Systems's Days Inventory for the three months ended in Sep. 2007 was 7376.04.
VECTr Systems's Days Payable for the three months ended in Sep. 2007 was 8699.17.
Therefore, VECTr Systems's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2007 was -1,300.32.

VECTr Systems Cash Conversion Cycle Historical Data

The historical data trend for VECTr Systems'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.

VECTr Systems Cash Conversion Cycle Chart

VECTr Systems Annual Data

Trend

Dec04

Dec05

Dec06

Cash Conversion Cycle

-3,598.72

-903.68

-116.91

VECTr Systems Quarterly Data
	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07
Cash Conversion Cycle	Get a 7-Day Free Trial						986.28	114.63	-55.19	-189.83	-1,300.32

Competitive Comparison of VECTr Systems's Cash Conversion Cycle

For the Aerospace & Defense subindustry, VECTr Systems'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.

VECTr Systems's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, VECTr Systems's Cash Conversion Cycle distribution charts can be found below:

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

VECTr Systems 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.

VECTr Systems's Cash Conversion Cycle for the fiscal year that ended in Dec. 2006 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	44.02	+	425.23	-	586.16
	=	-116.91

VECTr Systems's Cash Conversion Cycle for the quarter that ended in Sep. 2007 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	22.81	+	7376.04	-	8699.17
	=	-1,300.32

VECTr Systems (GREY:VECT) 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.

VECTr Systems Cash Conversion Cycle Related Terms

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