Araucaria Participacoes (BSP:VDNP3B) Cash Conversion Cycle: 392.29 (As of Jun. 2014)


What is Araucaria Participacoes Cash Conversion Cycle?

Araucaria Participacoes BSP:VDNP3B Cash Conversion Cycle is 392.29 as of Jun. 2014.

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

Araucaria Participacoes's Days Sales Outstanding for the three months ended in Jun. 2014 was 60.97.
Araucaria Participacoes's Days Inventory for the three months ended in Jun. 2014 was 367.97.
Araucaria Participacoes's Days Payable for the three months ended in Jun. 2014 was 36.65.
Therefore, Araucaria Participacoes's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2014 was 392.29.

Araucaria Participacoes  (BSP:VDNP3B) 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.

Araucaria Participacoes Cash Conversion Cycle Related Terms

Araucaria Participacoes Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Araucaria Participacoes'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.

Araucaria Participacoes Cash Conversion Cycle Chart

Araucaria Participacoes Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13
Cash Conversion Cycle
454.56 638.97 1,309.65 714.64 1,031.68

Araucaria Participacoes Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14
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 298.31 127.11 537.13 551.82 392.29

Araucaria Participacoes Cash Conversion Cycle Competitor Comparison

For the subindustry, Araucaria Participacoes'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.

Araucaria Participacoes Cash Conversion Cycle vs Industry

For the industry and sector, Araucaria Participacoes's Cash Conversion Cycle distribution charts can be found below:

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


Araucaria Participacoes 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.

Araucaria Participacoes's Cash Conversion Cycle for the fiscal year that ended in Dec. 2013 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=64.61+1033.1-66.03
=1,031.68

Araucaria Participacoes's Cash Conversion Cycle for the quarter that ended in Jun. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=60.97+367.97-36.65
=392.29

* 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 392.29 mean?
Araucaria Participacoes (BSP:VDNP3B) has a Cash Conversion Cycle of 392.29 as of Jun. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Araucaria Participacoes and its competitors.
Is Araucaria Participacoes' Cash Conversion Cycle too high?
Araucaria Participacoes' current Cash Conversion Cycle is 392.29.
How does Araucaria Participacoes' Cash Conversion Cycle compare to competitors?
Araucaria Participacoes' Cash Conversion Cycle is 392.29. 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 company?
A good Cash Conversion Cycle depends on the industry context. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Araucaria Participacoes and its competitors. Araucaria Participacoes's current Cash Conversion Cycle is 392.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Araucaria Participacoes stock overvalued right now?
Araucaria Participacoes (BSP:VDNP3B) has a current Cash Conversion Cycle of 392.29. The current Cash Conversion Cycle is 392.29. 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 Araucaria Participacoes (BSP:VDNP3B), the current Cash Conversion Cycle is 392.29 as of Jun. 2014. 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.

Araucaria Participacoes Business Description