Fairway Group Holdings's Days Sales Outstanding for the
three
months ended in Dec. 2015 was 1.85.
Fairway Group Holdings's Days Inventory for the
three
months ended in Dec. 2015 was 20.43.
Fairway Group Holdings's Days Payable for the
three
months ended in Dec. 2015 was 25.4.
Therefore, Fairway Group Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2015 was -3.12.
Fairway Group Holdings (FRA:FGWA) 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.
Fairway Group Holdings Cash Conversion Cycle Related Terms
Fairway Group Holdings Cash Conversion Cycle Historical Data
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The historical data trend for Fairway Group Holdings'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.
Fairway Group Holdings Cash Conversion Cycle Chart
FRA:FGWA vs IFMK: Cash Conversion Cycle Comparison
For the Grocery Stores subindustry, Fairway Group 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.
Fairway Group Holdings Cash Conversion Cycle vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Fairway Group Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Fairway Group Holdings's Cash Conversion Cycle falls into.
Fairway Group 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.
Fairway Group Holdings's Cash Conversion Cycle for the fiscal year that ended in Mar. 2015 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.
Fairway Group Holdings (FRA:FGWA) has a Cash Conversion Cycle of -3.12 as of Dec. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Fairway Group Holdings and its competitors.
Is Fairway Group Holdings' Cash Conversion Cycle too high?
Fairway Group Holdings' current Cash Conversion Cycle is -3.12.
How does Fairway Group Holdings' Cash Conversion Cycle compare to IFMK?
Fairway Group Holdings' Cash Conversion Cycle of -3.12 can be compared against companies in the Retail - Defensive industry. The industry median Cash Conversion Cycle is 19.65. 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 Retail - Defensive company?
The median Cash Conversion Cycle among Retail - Defensive companies is 19.65, based on 307 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. 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 Fairway Group Holdings and its competitors. For the Retail - Defensive industry, the median Cash Conversion Cycle is 19.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fairway Group Holdings's current Cash Conversion Cycle is -3.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Cash Conversion Cycle of -3.12. The current Cash Conversion Cycle is -3.12. 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 Fairway Group Holdings (FRA:FGWA), the current Cash Conversion Cycle is -3.12 as of Dec. 2015. 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.
Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.
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