FRMB (Forum Mobile) Cash Conversion Cycle: 39.07 (As of Jun. 2006)


What is Forum Mobile Cash Conversion Cycle?

Forum Mobile FRMB -99.00% Cash Conversion Cycle is 39.07 as of Jun. 2006.

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

Forum Mobile's Days Sales Outstanding for the three months ended in Jun. 2006 was 57.06.
Forum Mobile's Days Inventory for the three months ended in Jun. 2006 was 47.63.
Forum Mobile's Days Payable for the three months ended in Jun. 2006 was 65.62.
Therefore, Forum Mobile's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2006 was 39.07.

Forum Mobile  (OTCPK:FRMB) 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.

Forum Mobile Cash Conversion Cycle Related Terms

Forum Mobile Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Forum Mobile'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.

Forum Mobile Cash Conversion Cycle Chart

Forum Mobile Annual Data
Trend Dec00 Dec01 Dec02 Dec03 Dec04 Dec05
Cash Conversion Cycle
Get a 7-Day Free Trial -29.51 -84.10 0.00 0.00 83.37

Forum Mobile Quarterly Data
Sep01 Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06
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 22.08 47.47 40.86 47.88 39.07

FRMB vs DIRV, FULO, TOWTF: Cash Conversion Cycle Comparison

For the Telecom Services subindustry, Forum Mobile'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.

Forum Mobile Cash Conversion Cycle vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Forum Mobile's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Forum Mobile's Cash Conversion Cycle falls into.


Forum Mobile 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.

Forum Mobile's Cash Conversion Cycle for the fiscal year that ended in Dec. 2005 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=64.08+60.59-41.3
=83.37

Forum Mobile's Cash Conversion Cycle for the quarter that ended in Jun. 2006 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=57.06+47.63-65.62
=39.07

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 39.07 mean?
Forum Mobile (FRMB) has a Cash Conversion Cycle of 39.07 as of Jun. 2006. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Forum Mobile and its competitors.
Is Forum Mobile's Cash Conversion Cycle too high?
Forum Mobile's current Cash Conversion Cycle is 39.07.
How does Forum Mobile's Cash Conversion Cycle compare to DIRV and FULO?
Forum Mobile's Cash Conversion Cycle of 39.07 can be compared against companies in the Telecommunication Services industry. 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 Telecommunication Services company?
A good Cash Conversion Cycle depends on the Telecommunication Services industry context. 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 Forum Mobile and its competitors. Forum Mobile's current Cash Conversion Cycle is 39.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forum Mobile stock overvalued right now?
Forum Mobile (FRMB) has a current Cash Conversion Cycle of 39.07. The current Cash Conversion Cycle is 39.07. 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 Forum Mobile (FRMB), the current Cash Conversion Cycle is 39.07 as of Jun. 2006. 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.

Forum Mobile Business Description

Address 26 Broadway, 21st Floor, New York, NY, USA, 10004
Forum Mobile Inc is a global Mobile Virtual Network Enabler (MVNE) based in the USA. It specializes in MVNE, Mobile Services, Telecom, and cloud services. The company is active in a variety of complementary fields such as private banking, business development, and consulting, and provides hosting and trading platforms. Geographically the business activities are operated through the United States.