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.
Environmental Solutions Worldwide Cash Conversion Cycle Related Terms
Environmental Solutions Worldwide Cash Conversion Cycle Historical Data
* 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.
ESWW vs STCC, FNHI, PFTI: Cash Conversion Cycle Comparison
For the Auto Parts subindustry, Environmental Solutions Worldwide'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.
Environmental Solutions Worldwide Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Environmental Solutions Worldwide's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Environmental Solutions Worldwide'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.
* 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.
Environmental Solutions Worldwide (ESWW) has a Cash Conversion Cycle of 121.73 as of Dec. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Environmental Solutions Worldwide and its competitors.
Is Environmental Solutions Worldwide's Cash Conversion Cycle too high?
Environmental Solutions Worldwide's current Cash Conversion Cycle is 121.73. The Vehicles & Parts industry median Cash Conversion Cycle is 67.44. Environmental Solutions Worldwide's value of 121.73 is 80.5% above this industry median.
How does Environmental Solutions Worldwide's Cash Conversion Cycle compare to STCC and FNHI?
Environmental Solutions Worldwide's Cash Conversion Cycle of 121.73 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.44. Environmental Solutions Worldwide's value of 121.73 is 80.5% 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 a Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.44, based on 1,326 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. Environmental Solutions Worldwide's current Cash Conversion Cycle of 121.73 is 80.5% 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 Environmental Solutions Worldwide and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Environmental Solutions Worldwide's current Cash Conversion Cycle is 121.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Environmental Solutions Worldwide stock overvalued right now?
Environmental Solutions Worldwide (ESWW) has a current Cash Conversion Cycle of 121.73. The current Cash Conversion Cycle is 121.73 and 80.5% above the Vehicles & Parts industry median of 67.44. 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 Environmental Solutions Worldwide (ESWW), the current Cash Conversion Cycle is 121.73 as of Dec. 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.
Environmental Solutions Worldwide Business Description
Environmental Solutions Worldwide Inc through its subsidiaries is involved in the designing, development, manufacturing, and sales of emissions control technologies. It also provides emissions testing and environmental certification services. The firm's products include horizondpf, longview dpf, and vista dpf. It has Air testing services and MHDD diesel emission control manufacturing and sales operating segments. The company derives the majority of its revenues from MHDD diesel control segment.
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