FRTN (Fortran) Cash Conversion Cycle: 58.95 (As of Jun. 2008)


What is Fortran Cash Conversion Cycle?

Fortran FRTN +41.58% Cash Conversion Cycle is 58.95 as of Jun. 2008.

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

Fortran's Days Sales Outstanding for the three months ended in Jun. 2008 was 55.26.
Fortran's Days Inventory for the three months ended in Jun. 2008 was 31.43.
Fortran's Days Payable for the three months ended in Jun. 2008 was 27.74.
Therefore, Fortran's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2008 was 58.95.

Fortran  (OTCPK:FRTN) 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.

Fortran Cash Conversion Cycle Related Terms

Fortran Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Fortran'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.

Fortran Cash Conversion Cycle Chart

Fortran Annual Data
Trend Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 49.19 48.22 43.79 44.88 56.74

Fortran Quarterly Data
Sep03 Dec03 Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08
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 53.96 51.07 58.39 58.68 58.95

FRTN vs FULO, TWER, DTGI: Cash Conversion Cycle Comparison

For the Telecom Services subindustry, Fortran'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.

Fortran Cash Conversion Cycle vs Telecommunication Services Industry

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

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


Fortran 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.

Fortran's Cash Conversion Cycle for the fiscal year that ended in Dec. 2007 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=50.73+28.56-22.55
=56.74

Fortran's Cash Conversion Cycle for the quarter that ended in Jun. 2008 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=55.26+31.43-27.74
=58.95

* 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 58.95 mean?
Fortran (FRTN) has a Cash Conversion Cycle of 58.95 as of Jun. 2008. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Fortran and its competitors.
Is Fortran's Cash Conversion Cycle too high?
Fortran's current Cash Conversion Cycle is 58.95.
How does Fortran's Cash Conversion Cycle compare to FULO and TWER?
Fortran's Cash Conversion Cycle of 58.95 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 Fortran and its competitors. Fortran's current Cash Conversion Cycle is 58.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortran stock overvalued right now?
Fortran (FRTN) has a current Cash Conversion Cycle of 58.95. The current Cash Conversion Cycle is 58.95. 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 Fortran (FRTN), the current Cash Conversion Cycle is 58.95 as of Jun. 2008. 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.

Fortran Business Description

Address 324 US 70 S.W, Hickory, NC, USA, 28602
Fortran Corp is engaged in the sales, installation, and service of telecommunication systems in North Carolina, South Carolina, and Florida. It generates revenue through designing, sourcing, implementing, and maintaining complex telecommunications solutions. The company is focused on converting the historical and traditional Telecom business model to a Telecom-As-A-Service (TaaS) and is comprised of engineering and design, network services, technical certifications, regional sales teams, remote monitoring, on-site service, dedicated sales, and support.