DZS's Days Sales Outstanding for the
three
months ended in Sep. 2024 was 88.95.
DZS's Days Inventory for the
three
months ended in Sep. 2024 was 269.84.
DZS's Days Payable for the
three
months ended in Sep. 2024 was 190.02.
Therefore, DZS's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2024 was 168.77.
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.
DZS Cash Conversion Cycle Related Terms
DZS Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for DZS'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.
DZSI vs BDRL, TPTW, MLRT: Cash Conversion Cycle Comparison
For the Communication Equipment subindustry, DZS'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.
DZS Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, DZS's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where DZS's Cash Conversion Cycle falls into.
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.
DZS's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
DZS (DZSI) has a Cash Conversion Cycle of 168.77 as of Sep. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on DZS and its competitors.
Is DZS's Cash Conversion Cycle too high?
DZS's current Cash Conversion Cycle is 168.77. The Hardware industry median Cash Conversion Cycle is 98.93. DZS's value of 168.77 is 70.6% above this industry median. Overall, DZS has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does DZS's Cash Conversion Cycle compare to BDRL and TPTW?
DZS's Cash Conversion Cycle of 168.77 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.93. DZS's value of 168.77 is 70.6% 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.93, based on 2,473 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. DZS's current Cash Conversion Cycle of 168.77 is 70.6% 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 DZS and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DZS's current Cash Conversion Cycle is 168.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DZS stock overvalued right now?
DZS (DZSI) has a current Cash Conversion Cycle of 168.77. The current Cash Conversion Cycle is 168.77 and 70.6% above the Hardware industry median of 98.93. DZS's overall GF Score™ is 16/100. 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 DZS (DZSI), the current Cash Conversion Cycle is 168.77 as of Sep. 2024. 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.
DZS Inc is a provider of network access solutions. It designs, develops, and manufactures communications network equipment for telecommunications operators and enterprises. The firm provides solutions in the following areas: broadband access, middle-mile optical transport, and networks orchestration, network assurance, and Wi-Fi management software. Its primary geographic markets are the Americas, Europe, Middle East, Africa, Australia, and New Zealand.
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