Europa Oil & Gas (Holdings) (FRA:EGN) 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.
Europa Oil & Gas (Holdings) Cash Conversion Cycle Related Terms
Europa Oil & Gas (Holdings) 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.
Europa Oil & Gas (Holdings) Cash Conversion Cycle Chart
FRA:EGN vs COP, EOG, FANG: Cash Conversion Cycle Comparison
For the Oil & Gas E&P subindustry, Europa Oil & Gas (Holdings)'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.
Europa Oil & Gas (Holdings) Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Europa Oil & Gas (Holdings)'s Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Europa Oil & Gas (Holdings)'s Cash Conversion Cycle falls into.
Europa Oil & Gas (Holdings) 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.
Europa Oil & Gas (Holdings)'s Cash Conversion Cycle for the fiscal year that ended in Jul. 2024 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.
Europa Oil & Gas (Holdings) (FRA:EGN) has a Cash Conversion Cycle of 61.04 as of Jul. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Europa Oil & Gas (Holdings) and its competitors.
Is Europa Oil & Gas (Holdings)'s Cash Conversion Cycle too high?
Europa Oil & Gas (Holdings)'s current Cash Conversion Cycle is 61.04. The Oil & Gas industry median Cash Conversion Cycle is 18.22. Europa Oil & Gas (Holdings)'s value of 61.04 is 235% above this industry median.
How does Europa Oil & Gas (Holdings)'s Cash Conversion Cycle compare to COP and EOG?
Europa Oil & Gas (Holdings)'s Cash Conversion Cycle of 61.04 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.22. Europa Oil & Gas (Holdings)'s value of 61.04 is 235% 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 18.22, 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. Europa Oil & Gas (Holdings)'s current Cash Conversion Cycle of 61.04 is 235% 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 Europa Oil & Gas (Holdings) and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Europa Oil & Gas (Holdings)'s current Cash Conversion Cycle is 61.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Europa Oil & Gas (Holdings) stock overvalued right now?
Europa Oil & Gas (Holdings) (FRA:EGN) has a current Cash Conversion Cycle of 61.04. The current Cash Conversion Cycle is 61.04 and 235% above the Oil & Gas industry median of 18.22. 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 Europa Oil & Gas (Holdings) (FRA:EGN), the current Cash Conversion Cycle is 61.04 as of Jul. 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.
Europa Oil & Gas (Holdings) PLC is an oil and gas exploration, development, and production company. It is focused on developing a balanced portfolio of assets in the North Sea, Atlantic Ireland, and West Africa, supported by revenue from onshore oil production in the United Kingdom. The company holds interests in the Broughton North prospect, West Firsby and Crosby Warren fields, Wressle-1 well, and Whisby W4 well. In the Irish Atlantic region, it considers the Inishkea prospect in the Slyne basin and near the Corrib gasfield as its flagship project in Ireland. The company has also acquired interest in the Block EG-08 offshore in the Douala Basin of Equatorial Guinea. Its reportable segments are the United Kingdom which derives key revenue, Ireland, and West Africa.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:EGN has been successfully added to your 