DSG (Diamond S Shipping Group) Cash Conversion Cycle: 30.94 (As of Mar. 2013)


What is Diamond S Shipping Group Cash Conversion Cycle?

Diamond S Shipping Group DSG Cash Conversion Cycle is 30.94 as of Mar. 2013. The stock has 1 warning sign investors should review.

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

Diamond S Shipping Group's Days Sales Outstanding for the six months ended in Mar. 2013 was 7.27.
Diamond S Shipping Group's Days Inventory for the six months ended in Mar. 2013 was 23.67.
Diamond S Shipping Group's Days Payable for the six months ended in Mar. 2013 was 0.
Therefore, Diamond S Shipping Group's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2013 was 30.94.

Diamond S Shipping Group  (NYSE:DSG) 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.

Diamond S Shipping Group Cash Conversion Cycle Related Terms

Diamond S Shipping Group Cash Conversion Cycle Historical Data

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The historical data trend for Diamond S Shipping 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.

Diamond S Shipping Group Cash Conversion Cycle Chart

Diamond S Shipping Group Annual Data
Trend Mar12 Mar13
Cash Conversion Cycle
42.49 30.94

Diamond S Shipping Group Semi-Annual Data
Mar12 Mar13
Cash Conversion Cycle 42.49 30.94

DSG vs PRGNF, TEUFF, BSTN: Cash Conversion Cycle Comparison

For the Marine Shipping subindustry, Diamond S Shipping 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.

Diamond S Shipping Group Cash Conversion Cycle vs Transportation Industry

For the Transportation industry and Industrials sector, Diamond S Shipping Group's Cash Conversion Cycle distribution charts can be found below:

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


Diamond S Shipping 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.

Diamond S Shipping Group's Cash Conversion Cycle for the fiscal year that ended in Mar. 2013 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=7.27+23.67-0
=30.94

Diamond S Shipping Group's Cash Conversion Cycle for the quarter that ended in Mar. 2013 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=7.27+23.67-0
=30.94

* 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 30.94 mean?
Diamond S Shipping Group (DSG) has a Cash Conversion Cycle of 30.94 as of Mar. 2013. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Diamond S Shipping Group and its competitors.
Is Diamond S Shipping Group's Cash Conversion Cycle too high?
Diamond S Shipping Group's current Cash Conversion Cycle is 30.94. The Transportation industry median Cash Conversion Cycle is 20.26. Diamond S Shipping Group's value of 30.94 is 52.8% above this industry median.
How does Diamond S Shipping Group's Cash Conversion Cycle compare to PRGNF and TEUFF?
Diamond S Shipping Group's Cash Conversion Cycle of 30.94 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. Diamond S Shipping Group's value of 30.94 is 52.8% above this benchmark. 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,000 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. Diamond S Shipping Group's current Cash Conversion Cycle of 30.94 is 52.8% above the industry median. 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 Diamond S Shipping Group and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamond S Shipping Group's current Cash Conversion Cycle is 30.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamond S Shipping Group stock overvalued right now?
Diamond S Shipping Group (DSG) has a current Cash Conversion Cycle of 30.94. The current Cash Conversion Cycle is 30.94 and 52.8% above the Transportation industry median of 20.26. 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 Diamond S Shipping Group (DSG), the current Cash Conversion Cycle is 30.94 as of Mar. 2013. 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.

Diamond S Shipping Group Business Description

Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.