Celgene's Days Sales Outstanding for the
three
months ended in Sep. 2019 was 43.73.
Celgene's Days Inventory for the
three
months ended in Sep. 2019 was 224.49.
Celgene's Days Payable for the
three
months ended in Sep. 2019 was 186.39.
Therefore, Celgene's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2019 was 81.83.
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.
Celgene Cash Conversion Cycle Related Terms
Celgene Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Celgene'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.
BUE:CELG vs GILD, BIIB, ACT: Cash Conversion Cycle Comparison
For the Drug Manufacturers - General subindustry, Celgene'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.
Celgene Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Celgene's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Celgene's Cash Conversion Cycle falls into.
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.
Celgene's Cash Conversion Cycle for the fiscal year that ended in Dec. 2018 is calculated as
* 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.
Celgene (BUE:CELG) has a Cash Conversion Cycle of 81.83 as of Sep. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Celgene and its competitors.
Is Celgene's Cash Conversion Cycle too high?
Celgene's current Cash Conversion Cycle is 81.83. The Drug Manufacturers industry median Cash Conversion Cycle is 145.92. Celgene's value of 81.83 is 43.9% below this industry median. Overall, Celgene has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Celgene's Cash Conversion Cycle compare to GILD and BIIB?
Celgene's Cash Conversion Cycle of 81.83 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.92. Celgene's value of 81.83 is 43.9% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.92, based on 955 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. Celgene's current Cash Conversion Cycle of 81.83 is 43.9% 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 Celgene and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Celgene's current Cash Conversion Cycle is 81.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Celgene stock overvalued right now?
Celgene (BUE:CELG) has a current Cash Conversion Cycle of 81.83. The current Cash Conversion Cycle is 81.83 and 43.9% below the Drug Manufacturers industry median of 145.92. Celgene's overall GF Score™ is 10/100 with 1 warning sign to review. 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 Celgene (BUE:CELG), the current Cash Conversion Cycle is 81.83 as of Sep. 2019. 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.
Celgene is a biopharmaceutical firm that discovers, develops, and markets therapeutics for the treatment of cancer and immunological diseases. Celgene markets Thalomid and Pomalyst to treat multiple myeloma and Revlimid, a less toxic thalidomide derivative, to treat myelodysplastic syndromes, multiple myeloma, and mantle cell lymphoma. Acquisitions have brought MDS drug Vidaza, T-cell lymphoma drug Istodax, and cancer drug Abraxane. The firm's first immunology drug, Otezla, was approved in the U.S. in 2014. Pending acquisitions of Juno and Impact bring additional drugs for Celgene's blood cancer pipeline.
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