UGL (ASX:UGL) Cash Conversion Cycle : 141.23 (As of Jun. 2015)

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What is UGL Cash Conversion Cycle?

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

UGL's Days Sales Outstanding for the six months ended in Jun. 2015 was 0.
UGL's Days Inventory for the six months ended in Jun. 2015 was 141.23.
UGL's Days Payable for the six months ended in Jun. 2015 was 0.
Therefore, UGL's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2015 was 141.23.

UGL Cash Conversion Cycle Historical Data

The historical data trend for UGL'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.

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UGL Cash Conversion Cycle Chart

UGL Annual Data

Trend

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Cash Conversion Cycle

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108.43

106.20

213.78

184.29

141.23

UGL Semi-Annual Data
	Jun06	Jun07	Jun08	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14	Jun15
Cash Conversion Cycle	Get a 7-Day Free Trial					108.43	106.20	213.78	184.29	141.23

Competitive Comparison of UGL's Cash Conversion Cycle

For the Engineering & Construction subindustry, UGL'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.

UGL's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, UGL's Cash Conversion Cycle distribution charts can be found below:

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

UGL 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.

UGL's Cash Conversion Cycle for the fiscal year that ended in Jun. 2015 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	0	+	141.23	-	0
	=	141.23

UGL's Cash Conversion Cycle for the quarter that ended in Jun. 2015 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	0	+	141.23	-	0
	=	141.23

UGL (ASX:UGL) 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.

UGL Cash Conversion Cycle Related Terms

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UGL (ASX:UGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » UGL Ltd (ASX:UGL) » Definitions » Cash Conversion Cycle

Traded in Other Exchanges

N/A

Address

Website

http://www.ugllimited.com

UGL is a diversified provider of specialised engineering, maintenance, and facilities management services in the areas of mining, water, power, rail, and other essential infrastructure. The company operates in Australia, New Zealand, and Southeast Asia, but more than 95% of operating revenue is derived from Australia. During the mining boom, as demand for contractors rapidly expanded, UGL experienced robust profit growth; however, by fiscal 2013, as demand once again slowed, the inevitable fall in earnings began.