Deutsche Effecten- und Wechsel- Beteiligungsges AG (FRA:EFF0) 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.
Deutsche Effecten- und Wechsel- Beteiligungsges AG Cash Conversion Cycle Related Terms
Deutsche Effecten- und Wechsel- Beteiligungsges AG 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.
Deutsche Effecten- und Wechsel- Beteiligungsges AG Cash Conversion Cycle Chart
Deutsche Effecten- und Wechsel- Beteiligungsges AG Annual Data
FRA:EFF0 vs BLK, BX, KKR: Cash Conversion Cycle Comparison
For the Asset Management subindustry, Deutsche Effecten- und Wechsel- Beteiligungsges AG'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.
Deutsche Effecten- und Wechsel- Beteiligungsges AG Cash Conversion Cycle vs Asset Management Industry
Deutsche Effecten- und Wechsel- Beteiligungsges AG 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.
* 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.
Deutsche Effecten- und Wechsel- Beteiligungsges AG (FRA:EFF0) has a Cash Conversion Cycle of 34.42 as of Jun. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Deutsche Effecten- und Wechsel- Beteiligungsges AG and its competitors.
Is Deutsche Effecten- und Wechsel- Beteiligungsges AG's Cash Conversion Cycle too high?
Deutsche Effecten- und Wechsel- Beteiligungsges AG's current Cash Conversion Cycle is 34.42. The Asset Management industry median Cash Conversion Cycle is 4.18. Deutsche Effecten- und Wechsel- Beteiligungsges AG's value of 34.42 is 724.4% above this industry median. Overall, Deutsche Effecten- und Wechsel- Beteiligungsges AG has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Deutsche Effecten- und Wechsel- Beteiligungsges AG's Cash Conversion Cycle compare to BLK and BX?
Deutsche Effecten- und Wechsel- Beteiligungsges AG's Cash Conversion Cycle of 34.42 can be compared against companies in the Asset Management industry. The industry median Cash Conversion Cycle is 4.18. Deutsche Effecten- und Wechsel- Beteiligungsges AG's value of 34.42 is 724.4% 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 Asset Management company?
The median Cash Conversion Cycle among Asset Management companies is 4.18, based on 606 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. Deutsche Effecten- und Wechsel- Beteiligungsges AG's current Cash Conversion Cycle of 34.42 is 724.4% 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 Deutsche Effecten- und Wechsel- Beteiligungsges AG and its competitors. For the Asset Management industry, the median Cash Conversion Cycle is 4.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Deutsche Effecten- und Wechsel- Beteiligungsges AG's current Cash Conversion Cycle is 34.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Deutsche Effecten- und Wechsel- Beteiligungsges AG stock overvalued right now?
Deutsche Effecten- und Wechsel- Beteiligungsges AG (FRA:EFF0) has a current Cash Conversion Cycle of 34.42. The current Cash Conversion Cycle is 34.42 and 724.4% above the Asset Management industry median of 4.18. Deutsche Effecten- und Wechsel- Beteiligungsges AG's overall GF Score™ is 37/100 with 2 warning signs to review. 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 Deutsche Effecten- und Wechsel- Beteiligungsges AG (FRA:EFF0), the current Cash Conversion Cycle is 34.42 as of Jun. 2025. 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.
Deutsche Effecten- und Wechsel- Beteiligungsges AG Business Description
Deutsche Effecten- und Wechsel- Beteiligungsges AG is a Germany-based listed investment company that specializes in the selection, acquisition, development, and sale of tech companies. It focuses on asset management and companies whose technologies and business models have an impact on the future development of the financial industry. The company supports its portfolio companies with capital, expertise in corporate development, and its extensive network of experts.
37GF Score
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