Bonso Electronics International (OTCPK:BNSOF) 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.
Bonso Electronics International Cash Conversion Cycle Related Terms
Bonso Electronics International Cash Conversion Cycle Historical Data
* 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.
Bonso Electronics International Cash Conversion Cycle Chart
BNSOF vs MIND, SOBR, UCLE: Cash Conversion Cycle Comparison
For the Scientific & Technical Instruments subindustry, Bonso Electronics International'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.
Bonso Electronics International Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Bonso Electronics International's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Bonso Electronics International's Cash Conversion Cycle falls into.
Bonso Electronics International 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.
* 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.
Bonso Electronics International (BNSOF) has a Cash Conversion Cycle of 92.30 as of Sep. 2022. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Bonso Electronics International and its competitors.
Is Bonso Electronics International's Cash Conversion Cycle too high?
Bonso Electronics International's current Cash Conversion Cycle is 92.30. The Hardware industry median Cash Conversion Cycle is 98.95. Bonso Electronics International's value of 92.30 is 6.7% below this industry median. Overall, Bonso Electronics International has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Bonso Electronics International's Cash Conversion Cycle compare to MIND and SOBR?
Bonso Electronics International's Cash Conversion Cycle of 92.30 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Bonso Electronics International's value of 92.30 is 6.7% below 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,478 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. Bonso Electronics International's current Cash Conversion Cycle of 92.30 is 6.7% below 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 Bonso Electronics International and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bonso Electronics International's current Cash Conversion Cycle is 92.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bonso Electronics International stock overvalued right now?
Bonso Electronics International (BNSOF) has a current Cash Conversion Cycle of 92.30. The current Cash Conversion Cycle is 92.30 and 6.7% below the Hardware industry median of 98.95. Bonso Electronics International's overall GF Score™ is 16/100. 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 Bonso Electronics International (BNSOF), the current Cash Conversion Cycle is 92.30 as of Sep. 2022. 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.
Bonso Electronics International Business Description
Bonso Electronics International Inc mainly designs, develops, produces, and sells electronic sensor-based and wireless products for private label original equipment manufacturers, original brand manufacturers (OBMs), and original design manufacturers. The company has four operating segments: Scales, Others, Pet Electronics Products, and Rental and Management. It generates maximum revenue from the Scales segment. Geographically, the company derives maximum revenue from United States, followed by Germany, and the PRC. It also independently designs and develops electronic products for private label markets. The company rents factory space and equipment to third parties.
16GF Score
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