DGTW (DigitalTown) Cash Conversion Cycle: 0.00 (As of Aug. 2019)


What is DigitalTown Cash Conversion Cycle?

DigitalTown DGTW -90.00% Cash Conversion Cycle is 0.00 as of Aug. 2019.

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

DigitalTown's Days Sales Outstanding for the three months ended in Aug. 2019 was 0.
DigitalTown's Days Inventory for the three months ended in Aug. 2019 was 0.
DigitalTown's Days Payable for the three months ended in Aug. 2019 was 0.
Therefore, DigitalTown's Cash Conversion Cycle (CCC) for the three months ended in Aug. 2019 was 0.00.

DigitalTown  (OTCPK:DGTW) 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.

DigitalTown Cash Conversion Cycle Related Terms

DigitalTown Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for DigitalTown'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.

DigitalTown Cash Conversion Cycle Chart

DigitalTown Annual Data
Trend Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -288.53 -161.11 -39.29 -88.68 -154.61

DigitalTown Quarterly Data
Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19
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 -911.81 -459.98 0.00 45.63 0.00

DGTW vs TRLI, JMDA, TRXD: Cash Conversion Cycle Comparison

For the Software - Application subindustry, DigitalTown'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.

DigitalTown Cash Conversion Cycle vs Software Industry

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

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


DigitalTown 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.

DigitalTown's Cash Conversion Cycle for the fiscal year that ended in Feb. 2019 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=198.6+0-353.21
=-154.61

DigitalTown's Cash Conversion Cycle for the quarter that ended in Aug. 2019 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+0-0
=0.00

* 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 0.00 mean?
DigitalTown (DGTW) has a Cash Conversion Cycle of 0.00 as of Aug. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on DigitalTown and its competitors.
Is DigitalTown's Cash Conversion Cycle too high?
DigitalTown's current Cash Conversion Cycle is 0.00.
How does DigitalTown's Cash Conversion Cycle compare to TRLI and JMDA?
DigitalTown's Cash Conversion Cycle of 0.00 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.25. 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.25, based on 2,803 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. 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 DigitalTown and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DigitalTown's current Cash Conversion Cycle is 0.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DigitalTown stock overvalued right now?
DigitalTown (DGTW) has a current Cash Conversion Cycle of 0.00. The current Cash Conversion Cycle is 0.00. 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 DigitalTown (DGTW), the current Cash Conversion Cycle is 0.00 as of Aug. 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.

DigitalTown Business Description

Address 205 - 810 Quayside Drive, New Westminster, BC, CAN, V3M 6B9
DigitalTown Inc provides turn-key hosted solutions to power a comprehensive platform for government entities, citizens, and merchants. The company's solutions serve city officials and local merchants to manage a feature-rich smart city and provide residents and visitors with access to content, community, and commerce. It offers integrated search platform for both web and mobile devices. The company enables members of a community to find information and acquire the goods and services needed locally when possible.