DCEL (Digicel Group) Cash Conversion Cycle: -24.09 (As of Mar. 2015)

What is Digicel Group Cash Conversion Cycle?

Digicel Group DCEL Cash Conversion Cycle is -24.09 as of Mar. 2015.

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

Digicel Group's Days Sales Outstanding for the six months ended in Mar. 2015 was 35.61.
Digicel Group's Days Inventory for the six months ended in Mar. 2015 was 22.47.
Digicel Group's Days Payable for the six months ended in Mar. 2015 was 82.17.
Therefore, Digicel Group's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2015 was -24.09.

Digicel Group (NYSE:DCEL) 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.

Digicel Group Cash Conversion Cycle Related Terms

Digicel Group Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Digicel Group'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.

Digicel Group Cash Conversion Cycle Chart

Digicel Group Annual Data

Trend

Mar13

Mar14

Mar15

Cash Conversion Cycle

0.00

-15.35

-24.09

Digicel Group Semi-Annual Data
	Mar13	Mar14	Mar15
Cash Conversion Cycle	0.00	-15.35	-24.09

DCEL vs DIRV, FULO, TOWTF: Cash Conversion Cycle Comparison

For the Telecom Services subindustry, Digicel Group'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.

Digicel Group Cash Conversion Cycle vs Telecommunication Services Industry

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

* The bar in red indicates where Digicel Group's Cash Conversion Cycle falls into.

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Digicel Group 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.

Digicel Group's Cash Conversion Cycle for the fiscal year that ended in Mar. 2015 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	35.61	+	22.47	-	82.17
	=	-24.09

Digicel Group's Cash Conversion Cycle for the quarter that ended in Mar. 2015 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	35.61	+	22.47	-	82.17
	=	-24.09

Frequently Asked Questions Learn more about Cash Conversion Cycle →

What does a Cash Conversion Cycle of -24.09 mean?

Digicel Group (DCEL) has a Cash Conversion Cycle of -24.09 as of Mar. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Digicel Group and its competitors.

Is Digicel Group's Cash Conversion Cycle too high?

Digicel Group's current Cash Conversion Cycle is -24.09.

How does Digicel Group's Cash Conversion Cycle compare to DIRV and FULO?

Digicel Group's Cash Conversion Cycle of -24.09 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 Digicel Group and its competitors. Digicel Group's current Cash Conversion Cycle is -24.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Digicel Group stock overvalued right now?

Digicel Group (DCEL) has a current Cash Conversion Cycle of -24.09. The current Cash Conversion Cycle is -24.09. 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 Digicel Group (DCEL), the current Cash Conversion Cycle is -24.09 as of Mar. 2015. 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.

Digicel Group Business Description

Industry Communication Services Telecommunication Services

Comparable Companies DIRV FULO TOWTF INVT TWER DTGI MTSL WPCS KONE SLXXF TEUM VLTC CCOP GLOW CLRI TELLF NXGH OTEL SYTE FSNN

Website http://www.digicelgroup.com

Digicel Group Ltd was incorporated under the laws of Bermuda on February 5, 2007. The Company is a provider of communications services in the Caribbean and South Pacific regions. It provides a comprehensive range of mobile communications, business solutions, cable TV & broadband and other related products and services to retail, corporate (including small and medium-sized enterprises) and government customers. Its business is currently organized into nine reporting segments: Jamaica, Trinidad and Tobago, French West Indies, Haiti, El Salvador, Eastern Caribbean markets consisting of its operations in St. Lucia, Grenada and St. Vincent and the Grenadines, Guyana, Papua New Guinea and Other locations, consisting of its operations in all of its other markets. It has customer reach through 1,034 retail locations (including 667 exclusive stores) and a dealer and distributor network with approximately 183,000 recharge locations. It offers its services on both a prepaid and post-paid basis and market to retail and business customers. It caters to its retail customers through Digicel's dealer channel and to its corporate clients via a business channel. Its distribution channel is comprised of the four distinct categories: Vendor Stores, Third-Party Dealers, Prepaid Card Outlets, and Diaspora. The Company's Mobile and Cable TV & Broadband operations are subject to regulation in each of the markets in which it operates.