Buddy Technologies (ASX:BUDOA) Cash Conversion Cycle: 219.58 (As of Dec. 2021)


What is Buddy Technologies Cash Conversion Cycle?

Buddy Technologies ASX:BUDOA Cash Conversion Cycle is 219.58 as of Dec. 2021. The stock has 7 warning signs investors should review.

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

Buddy Technologies's Days Sales Outstanding for the six months ended in Dec. 2021 was 60.6.
Buddy Technologies's Days Inventory for the six months ended in Dec. 2021 was 278.6.
Buddy Technologies's Days Payable for the six months ended in Dec. 2021 was 119.62.
Therefore, Buddy Technologies's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2021 was 219.58.


Buddy Technologies  (ASX:BUDOA) 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.


Buddy Technologies Cash Conversion Cycle Related Terms


Buddy Technologies Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Buddy 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.

Buddy Technologies Cash Conversion Cycle Chart

Buddy Technologies Annual Data
Trend Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -121.96 -93.32 166.19 -5.56 28.32

Buddy Technologies Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21
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 51.71 -57.89 -112.32 35.91 219.58

ASX:BUDOA vs CYRNQ, SEII, DCLT: Cash Conversion Cycle Comparison

For the Software - Infrastructure subindustry, Buddy 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.


Buddy Technologies Cash Conversion Cycle vs Software Industry

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

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



Buddy 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.

Buddy Technologies's Cash Conversion Cycle for the fiscal year that ended in Jun. 2021 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=45.42+140.93-158.03
=28.32

Buddy Technologies's Cash Conversion Cycle for the quarter that ended in Dec. 2021 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=60.6+278.6-119.62
=219.58

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 219.58 mean?
Buddy Technologies (ASX:BUDOA) has a Cash Conversion Cycle of 219.58 as of Dec. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Buddy Technologies and its competitors.
Is Buddy Technologies' Cash Conversion Cycle too high?
Buddy Technologies' current Cash Conversion Cycle is 219.58. The Software industry median Cash Conversion Cycle is 32.25. Buddy Technologies' value of 219.58 is 580.9% above this industry median.
How does Buddy Technologies' Cash Conversion Cycle compare to CYRNQ and SEII?
Buddy Technologies' Cash Conversion Cycle of 219.58 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.25. Buddy Technologies' value of 219.58 is 580.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Software company?
The median Cash Conversion Cycle among Software companies is 32.25, based on 2,803 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Buddy Technologies's current Cash Conversion Cycle of 219.58 is 580.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Buddy Technologies and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Buddy Technologies's current Cash Conversion Cycle is 219.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Buddy Technologies stock overvalued right now?
Buddy Technologies (ASX:BUDOA) has a current Cash Conversion Cycle of 219.58. The current Cash Conversion Cycle is 219.58 and 580.9% above the Software industry median of 32.25. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Buddy Technologies (ASX:BUDOA), the current Cash Conversion Cycle is 219.58 as of Dec. 2021. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Buddy Technologies Business Description

Address 12 Pirie Street, Level 3, Adelaide, SA, AUS, 5000
Buddy Technologies Ltd is an IoT(Internet of Things) and a cloud-based technology company. The company's operating segment includes Commercial Business, Consumer Business, and Corporate. It generates maximum revenue from the Consumer Business segment that includes all the activities related to LIFX, which is the brand providing smart lighting solutions. Commercial Business includes Buddy Ohm, Buddy Cloud, and other Buddy Managed Services. Its geographical segments include Australia, North America, and EMEA(Europe, the Middle East & Africa).