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Cistera Networks (Cistera Networks) Cash Conversion Cycle : -144.33 (As of Sep. 2010)


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What is Cistera Networks Cash Conversion Cycle?

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

Cistera Networks's Days Sales Outstanding for the three months ended in Sep. 2010 was 27.52.
Cistera Networks's Days Inventory for the three months ended in Sep. 2010 was 22.4.
Cistera Networks's Days Payable for the three months ended in Sep. 2010 was 194.25.
Therefore, Cistera Networks's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2010 was -144.33.


Cistera Networks Cash Conversion Cycle Historical Data

The historical data trend for Cistera Networks'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.

* Premium members only.

Cistera Networks Cash Conversion Cycle Chart

Cistera Networks Annual Data
Trend Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1,504.30 -798.68 -94.93 -99.45 -175.80

Cistera Networks Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 -184.57 -262.05 -195.42 -114.62 -144.33

Competitive Comparison of Cistera Networks's Cash Conversion Cycle

For the Software - Application subindustry, Cistera Networks'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.


Cistera Networks's Cash Conversion Cycle Distribution in the Software Industry

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

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



Cistera Networks 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.

Cistera Networks's Cash Conversion Cycle for the fiscal year that ended in Mar. 2010 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=27.05+49.4-252.25
=-175.80

Cistera Networks's Cash Conversion Cycle for the quarter that ended in Sep. 2010 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=27.52+22.4-194.25
=-144.33

* 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.


Cistera Networks  (OTCPK:CNWT) 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.


Cistera Networks Cash Conversion Cycle Related Terms

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Cistera Networks (Cistera Networks) Business Description

Traded in Other Exchanges
N/A
Address
5045 Lorimar Drive, Suite 180, Plano, TX, USA, 75093 5707
Cistera Networks Inc is a provider of cloud business communications solutions. It acts as a global provider of call recording, speech analytics and business intelligence solutions via on-site server or the cloud.
Executives
Roaring Fork Capital Sbic, L.p. 10 percent owner 1875 LAWRENCE STREET, SUITE 400, DENVER CO 80202

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