GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Cortelco Systems Puerto Rico Inc (OTCPK:CPROF) » Definitions » Cash Conversion Cycle

Cortelco Systems Puerto Rico (Cortelco Systems Puerto Rico) Cash Conversion Cycle : 54.48 (As of Apr. 2009)


View and export this data going back to . Start your Free Trial

What is Cortelco Systems Puerto Rico Cash Conversion Cycle?

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

Cortelco Systems Puerto Rico's Days Sales Outstanding for the three months ended in Apr. 2009 was 102.06.
Cortelco Systems Puerto Rico's Days Inventory for the three months ended in Apr. 2009 was 20.5.
Cortelco Systems Puerto Rico's Days Payable for the three months ended in Apr. 2009 was 68.08.
Therefore, Cortelco Systems Puerto Rico's Cash Conversion Cycle (CCC) for the three months ended in Apr. 2009 was 54.48.


Cortelco Systems Puerto Rico Cash Conversion Cycle Historical Data

The historical data trend for Cortelco Systems Puerto Rico'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.

Cortelco Systems Puerto Rico Cash Conversion Cycle Chart

Cortelco Systems Puerto Rico Annual Data
Trend Jul02 Jul03 Jul04 Jul05 Jul06 Jul07 Jul08
Cash Conversion Cycle
Get a 7-Day Free Trial 90.78 61.31 55.30 53.35 33.87

Cortelco Systems Puerto Rico Quarterly Data
Jul04 Oct04 Jan05 Apr05 Jul05 Oct05 Jan06 Apr06 Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08 Jul08 Oct08 Jan09 Apr09
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 38.21 35.40 20.49 26.92 54.48

Competitive Comparison of Cortelco Systems Puerto Rico's Cash Conversion Cycle

For the Telecom Services subindustry, Cortelco Systems Puerto Rico'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.


Cortelco Systems Puerto Rico's Cash Conversion Cycle Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Cortelco Systems Puerto Rico's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Cortelco Systems Puerto Rico's Cash Conversion Cycle falls into.



Cortelco Systems Puerto Rico 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.

Cortelco Systems Puerto Rico's Cash Conversion Cycle for the fiscal year that ended in Jul. 2008 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=65.49+15.37-46.99
=33.87

Cortelco Systems Puerto Rico's Cash Conversion Cycle for the quarter that ended in Apr. 2009 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=102.06+20.5-68.08
=54.48

* 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.


Cortelco Systems Puerto Rico  (OTCPK:CPROF) 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.


Cortelco Systems Puerto Rico Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Cortelco Systems Puerto Rico's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Cortelco Systems Puerto Rico (Cortelco Systems Puerto Rico) Business Description

Traded in Other Exchanges
N/A
Address
Parque Ind. Caguas Oeste Road, 156 km 58.2, Caguas, PRI, 00726-7076
Cortelco Systems Puerto Rico Inc is engaged in the business of telecommunication systems. It offers security services, such as network security; and endpoint security comprising PCs, laptops, smart phones, tablets, barcode readers, or POS terminals. Geographically the activities are carried out through Puerto Rico.

Cortelco Systems Puerto Rico (Cortelco Systems Puerto Rico) Headlines

From GuruFocus