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Marvell Technology (XTER:9MW) Cash Conversion Cycle : 135.31 (As of Jan. 2024)


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What is Marvell Technology Cash Conversion Cycle?

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

Marvell Technology's Days Sales Outstanding for the three months ended in Jan. 2024 was 75.95.
Marvell Technology's Days Inventory for the three months ended in Jan. 2024 was 109.85.
Marvell Technology's Days Payable for the three months ended in Jan. 2024 was 50.49.
Therefore, Marvell Technology's Cash Conversion Cycle (CCC) for the three months ended in Jan. 2024 was 135.31.


Marvell Technology Cash Conversion Cycle Historical Data

The historical data trend for Marvell Technology'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.

Marvell Technology Cash Conversion Cycle Chart

Marvell Technology Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 92.54 82.92 84.08 120.39 137.41

Marvell Technology Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
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 156.39 151.07 144.86 133.95 135.31

Competitive Comparison of Marvell Technology's Cash Conversion Cycle

For the Semiconductors subindustry, Marvell Technology'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.


Marvell Technology's Cash Conversion Cycle Distribution in the Semiconductors Industry

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

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



Marvell Technology 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.

Marvell Technology's Cash Conversion Cycle for the fiscal year that ended in Jan. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=77.1+110.4-50.09
=137.41

Marvell Technology's Cash Conversion Cycle for the quarter that ended in Jan. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=75.95+109.85-50.49
=135.31

* 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.


Marvell Technology  (XTER:9MW) 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.


Marvell Technology Cash Conversion Cycle Related Terms

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Marvell Technology (XTER:9MW) Business Description

Address
1000 N. West Street, Suite 1200, Wilmington, DE, USA, 19801
Marvell Technology is a fabless chip designer focused on wired networking, where it has the second-highest market share. Marvell serves the data center, carrier, enterprise, automotive, and consumer end markets with processors, optical and copper transceivers, switches, and storage controllers.

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