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SBE-Varvit SpA (FRA:O4W) Cash Conversion Cycle : 253.47 (As of Dec. 2024)


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What is SBE-Varvit SpA Cash Conversion Cycle?

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

SBE-Varvit SpA's Days Sales Outstanding for the six months ended in Dec. 2024 was 95.03.
SBE-Varvit SpA's Days Inventory for the six months ended in Dec. 2024 was 294.38.
SBE-Varvit SpA's Days Payable for the six months ended in Dec. 2024 was 135.94.
Therefore, SBE-Varvit SpA's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2024 was 253.47.


SBE-Varvit SpA Cash Conversion Cycle Historical Data

The historical data trend for SBE-Varvit SpA'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.

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SBE-Varvit SpA Cash Conversion Cycle Chart

SBE-Varvit SpA Annual Data
Trend Dec21 Dec22 Dec23 Dec24
Cash Conversion Cycle
144.39 133.54 157.66 214.27

SBE-Varvit SpA Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Cash Conversion Cycle Get a 7-Day Free Trial 159.03 153.52 196.71 187.58 253.47

Competitive Comparison of SBE-Varvit SpA's Cash Conversion Cycle

For the Tools & Accessories subindustry, SBE-Varvit SpA'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.


SBE-Varvit SpA's Cash Conversion Cycle Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, SBE-Varvit SpA's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where SBE-Varvit SpA's Cash Conversion Cycle falls into.


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SBE-Varvit SpA 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.

SBE-Varvit SpA's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=81.72+258.11-125.56
=214.27

SBE-Varvit SpA's Cash Conversion Cycle for the quarter that ended in Dec. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=95.03+294.38-135.94
=253.47

* 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.


SBE-Varvit SpA  (FRA:O4W) 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.


SBE-Varvit SpA Cash Conversion Cycle Related Terms

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SBE-Varvit SpA Business Description

Traded in Other Exchanges
Address
Via Lazzaretti 2/A, Reggio Emilia, ITA, 42122
SBE-Varvit SpA is a company involved in the production of fasteners, and mechanical fastening joints of fundamental importance for many industrial sectors. It serves various sectors by offering products including screws, nuts, and cold-pressed products, of which a majority are manufactured internally, at its fully verticalized production facilities. The company operates in a single segment which is the production and sale of screws, bolts, and other mechanical components Geographically, it generates maximum revenue from Italy and the rest from the United States, Germany, Spain, France, and other countries.

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