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ViroPharma, (FRA:VPH) Cash Conversion Cycle : 307.33 (As of Sep. 2013)


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What is ViroPharma, Cash Conversion Cycle?

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

ViroPharma,'s Days Sales Outstanding for the three months ended in Sep. 2013 was 47.69.
ViroPharma,'s Days Inventory for the three months ended in Sep. 2013 was 314.03.
ViroPharma,'s Days Payable for the three months ended in Sep. 2013 was 54.39.
Therefore, ViroPharma,'s Cash Conversion Cycle (CCC) for the three months ended in Sep. 2013 was 307.33.


ViroPharma, Cash Conversion Cycle Historical Data

The historical data trend for ViroPharma,'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.

* Premium members only.

ViroPharma, Cash Conversion Cycle Chart

ViroPharma, Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 517.09 300.87 261.84 252.99 219.77

ViroPharma, Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 231.31 211.27 207.82 260.06 307.33

Competitive Comparison of ViroPharma,'s Cash Conversion Cycle

For the Biotechnology subindustry, ViroPharma,'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.


ViroPharma,'s Cash Conversion Cycle Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, ViroPharma,'s Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where ViroPharma,'s Cash Conversion Cycle falls into.



ViroPharma, 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.

ViroPharma,'s Cash Conversion Cycle for the fiscal year that ended in Dec. 2012 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=65.13+209.39-54.75
=219.77

ViroPharma,'s Cash Conversion Cycle for the quarter that ended in Sep. 2013 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=47.69+314.03-54.39
=307.33

* 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.


ViroPharma,  (FRA:VPH) 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.


ViroPharma, Cash Conversion Cycle Related Terms

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ViroPharma, (FRA:VPH) Business Description

Traded in Other Exchanges
N/A
Address
ViroPharma, Inc. was incorporated in Delaware in September 1994 and commenced operations in December 1994. It is a biotechnology company which develops and commercializes products that address serious diseases, used by physician specialists or in hospital settings. The Company's main development programs include C1 esterase inhibitor and a non-toxigenic strain of C. The Company markets and sells Cinryze in the United States for routine prophylaxis against angioedema attacks in adolescent and adult patients with hereditary angioedema. Cinryze is a C1 esterase inhibitor therapy for routine prophylaxis against HAE, also known as C1 inhibitor deficiency, a rare, severely debilitating, life-threatening genetic disorder. Cinryze was obtained in October 2008, and On 8 January 2010, the company obtained expanded rights to commercialize Cinryze and future C1-INH derived products in certain European countries and other territories throughout the world as well as rights to develop future C1-INH derived products for additional indications. The Company also markets and sells Vancocin HCl capsules, the oral capsule formulation of vancomycin hydrochloride, in the U.S. and its territories. Vancocin is a potent antibiotic approved by the U.S. Food and Drug Administration, or FDA, to treat antibiotic-associated pseudomembranous colitis caused by Clostridium difficile infection, or C. difficile, and enterocolitis caused by Staphylococcus aureus, including methicillin-resistant strains. The Company's product development portfolio is consists of programs such as C1 esterase inhibitor [human], maribavir for cytomegalovirus infection, VP20621: prevention of recurrent CDAD and VP20629: treatment of Friedreich's Ataxia. The Company is working on developing further therapeutic uses; potential additional indications in other C1 mediated diseases, and alternative modes of administration for C1 esterase inhibitor. It is also developing VP20621 for the treatment and prevention of CDAD. On September 30, 2011, it entered into a license agreement for the worldwide rights of Intellect Neurosciences, Inc. to its clinical stage drug candidate, VP-20629, which is a naturally occurring, small molecule that has potent anti-oxidant properties that can protect against neurodegenerative disease. Its main competitors include both public and private entities, including well-known, large pharmaceutical companies, chemical companies, biotechnology companies and research institutions.

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