Forbes Energy Services's Days Sales Outstanding for the
three
months ended in Mar. 2020 was 66.26.
Forbes Energy Services's Days Inventory for the
three
months ended in Mar. 2020 was 0.
Forbes Energy Services's Days Payable for the
three
months ended in Mar. 2020 was 26.04.
Therefore, Forbes Energy Services's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2020 was 40.22.
Forbes Energy Services (OTCPK:FLSS) 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.
Forbes Energy Services Cash Conversion Cycle Related Terms
Forbes Energy Services Cash Conversion Cycle Historical Data
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The historical data trend for Forbes Energy Services'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.
Forbes Energy Services Cash Conversion Cycle Chart
FLSS vs CRRTQ, HOSSQ, BANM: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Forbes Energy Services'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.
Forbes Energy Services Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Forbes Energy Services's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Forbes Energy Services's Cash Conversion Cycle falls into.
Forbes Energy Services 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.
Forbes Energy Services's Cash Conversion Cycle for the fiscal year that ended in Dec. 2019 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.
Forbes Energy Services (FLSS) has a Cash Conversion Cycle of 40.22 as of Mar. 2020. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Forbes Energy Services and its competitors.
Is Forbes Energy Services' Cash Conversion Cycle too high?
Forbes Energy Services' current Cash Conversion Cycle is 40.22. The Oil & Gas industry median Cash Conversion Cycle is 18.48. Forbes Energy Services' value of 40.22 is 117.6% above this industry median. Overall, Forbes Energy Services has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Forbes Energy Services' Cash Conversion Cycle compare to CRRTQ and HOSSQ?
Forbes Energy Services' Cash Conversion Cycle of 40.22 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.48. Forbes Energy Services' value of 40.22 is 117.6% 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 an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.48, based on 915 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. Forbes Energy Services's current Cash Conversion Cycle of 40.22 is 117.6% 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 Forbes Energy Services and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forbes Energy Services's current Cash Conversion Cycle is 40.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbes Energy Services stock overvalued right now?
Forbes Energy Services (FLSS) has a current Cash Conversion Cycle of 40.22. The current Cash Conversion Cycle is 40.22 and 117.6% above the Oil & Gas industry median of 18.48. Forbes Energy Services' 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 Forbes Energy Services (FLSS), the current Cash Conversion Cycle is 40.22 as of Mar. 2020. 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.
Forbes Energy Services Ltd operates as an oilfield services contractor that provides a wide range of well site services to oil and natural gas drilling and producing companies to help develop and enhance the production of oil and natural gas. The company operates in three business segments namely Well Servicing which is the key revenue driver, Coiled Tubing, and Fluid Logistics. These services include fluid hauling, fluid disposal, well maintenance, completion services, workovers and recompletions, plugging and abandonment, and tubing testing. Geographically, it operates in South, East, Central, and West Texas.
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