CVST (Covista Communications) Cash Conversion Cycle: -19.35 (As of Apr. 2005)


What is Covista Communications Cash Conversion Cycle?

Covista Communications CVST -99.67% Cash Conversion Cycle is -19.35 as of Apr. 2005.

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

Covista Communications's Days Sales Outstanding for the three months ended in Apr. 2005 was 70.92.
Covista Communications's Days Inventory for the three months ended in Apr. 2005 was 0.
Covista Communications's Days Payable for the three months ended in Apr. 2005 was 90.27.
Therefore, Covista Communications's Cash Conversion Cycle (CCC) for the three months ended in Apr. 2005 was -19.35.

Covista Communications  (OTCPK:CVST) 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.

Covista Communications Cash Conversion Cycle Related Terms

Covista Communications Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Covista Communications'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.

Covista Communications Cash Conversion Cycle Chart

Covista Communications Annual Data
Trend Jan96 Jan97 Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Jan04 Jan05
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -85.61 -73.91 -47.60 -42.36 -37.79

Covista Communications Quarterly Data
Jul00 Oct00 Jan01 Apr01 Jul01 Oct01 Jan02 Apr02 Jul02 Oct02 Jan03 Apr03 Jul03 Oct03 Jan04 Apr04 Jul04 Oct04 Jan05 Apr05
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 -36.72 -28.02 -39.77 -28.13 -19.35

CVST vs FULO, TWER, DTGI: Cash Conversion Cycle Comparison

For the Telecom Services subindustry, Covista Communications'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.

Covista Communications Cash Conversion Cycle vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Covista Communications's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Covista Communications's Cash Conversion Cycle falls into.


Covista Communications 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.

Covista Communications's Cash Conversion Cycle for the fiscal year that ended in Jan. 2005 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=59.64+0-97.43
=-37.79

Covista Communications's Cash Conversion Cycle for the quarter that ended in Apr. 2005 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=70.92+0-90.27
=-19.35

* 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 -19.35 mean?
Covista Communications (CVST) has a Cash Conversion Cycle of -19.35 as of Apr. 2005. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Covista Communications and its competitors.
Is Covista Communications' Cash Conversion Cycle too high?
Covista Communications' current Cash Conversion Cycle is -19.35.
How does Covista Communications' Cash Conversion Cycle compare to FULO and TWER?
Covista Communications' Cash Conversion Cycle of -19.35 can be compared against companies in the Telecommunication Services industry. 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 Telecommunication Services company?
A good Cash Conversion Cycle depends on the Telecommunication Services 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 Covista Communications and its competitors. Covista Communications's current Cash Conversion Cycle is -19.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Covista Communications stock overvalued right now?
Covista Communications (CVST) has a current Cash Conversion Cycle of -19.35. The current Cash Conversion Cycle is -19.35. 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 Covista Communications (CVST), the current Cash Conversion Cycle is -19.35 as of Apr. 2005. 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.

Covista Communications Business Description

Address 735 Broad Street, Unit 306, Chattanooga, TN, USA, 37402
Covista Communications Inc is a telecommunication service provider. Its products and services include voice, data, and internet solutions, including local, long-distance, and toll-free services, calling card, frame relay, Internet access, & directory assistance.