Education Management's Days Sales Outstanding for the
three
months ended in Jun. 2014 was 35.07.
Education Management's Days Inventory for the
three
months ended in Jun. 2014 was 0.
Education Management's Days Payable for the
three
months ended in Jun. 2014 was 10.2.
Therefore, Education Management's Cash Conversion Cycle (CCC) for the
three
months ended in Jun. 2014 was 24.87.
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.
Education Management Cash Conversion Cycle Related Terms
Education Management Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Education Management'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.
For the Education & Training Services subindustry, Education Management'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.
Education Management Cash Conversion Cycle vs Education Industry
For the Education industry and Consumer Defensive sector, Education Management's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Education Management'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.
Education Management's Cash Conversion Cycle for the fiscal year that ended in Jun. 2014 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.
Education Management (EDMCQ) has a Cash Conversion Cycle of 24.87 as of Jun. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Education Management and its competitors.
Is Education Management's Cash Conversion Cycle too high?
Education Management's current Cash Conversion Cycle is 24.87. The Education industry median Cash Conversion Cycle is 10.13. Education Management's value of 24.87 is 145.5% above this industry median.
How does Education Management's Cash Conversion Cycle compare to ZVO?
Education Management's Cash Conversion Cycle of 24.87 can be compared against companies in the Education industry. The industry median Cash Conversion Cycle is 10.13. Education Management's value of 24.87 is 145.5% 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 an Education company?
The median Cash Conversion Cycle among Education companies is 10.13, based on 256 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. Education Management's current Cash Conversion Cycle of 24.87 is 145.5% 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 Education Management and its competitors. For the Education industry, the median Cash Conversion Cycle is 10.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Education Management's current Cash Conversion Cycle is 24.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Education Management stock overvalued right now?
Education Management (EDMCQ) has a current Cash Conversion Cycle of 24.87. The current Cash Conversion Cycle is 24.87 and 145.5% above the Education industry median of 10.13. 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 Education Management (EDMCQ), the current Cash Conversion Cycle is 24.87 as of Jun. 2014. 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.
Education Management Corp provides post-secondary education in North America. It offers academic programs to students through campus-based and online instruction, or through a combination of both. The company operates in four segments including The Art Institutes; Argosy University; Brown Mackie Colleges and South University. The Art Institutes focus on applied arts in creative professions such as graphic design, media arts, and animation, culinary arts. Brown Mackie Colleges offer flexible Associate's and non-degree diploma programs that enable students to develop skills for entry-level positions in high-demand vocational specialties. South University offers academic programs in health profession and business disciplines, health sciences, nursing, criminal justice, psychology, and IT.
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