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Frontier (FSE:4250) Cash Conversion Cycle : 148.68 (As of Feb. 2024)


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What is Frontier Cash Conversion Cycle?

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

Frontier's Days Sales Outstanding for the three months ended in Feb. 2024 was 44.32.
Frontier's Days Inventory for the three months ended in Feb. 2024 was 105.91.
Frontier's Days Payable for the three months ended in Feb. 2024 was 1.55.
Therefore, Frontier's Cash Conversion Cycle (CCC) for the three months ended in Feb. 2024 was 148.68.


Frontier Cash Conversion Cycle Historical Data

The historical data trend for Frontier'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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Frontier Cash Conversion Cycle Chart

Frontier Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
Cash Conversion Cycle
Get a 7-Day Free Trial 102.67 89.12 79.32 84.53 101.56

Frontier Quarterly Data
Nov16 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
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 143.62 106.37 81.40 70.96 148.68

Competitive Comparison of Frontier's Cash Conversion Cycle

For the Auto Parts subindustry, Frontier'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.


Frontier's Cash Conversion Cycle Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Frontier's Cash Conversion Cycle distribution charts can be found below:

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



Frontier 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.

Frontier's Cash Conversion Cycle for the fiscal year that ended in Nov. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=36.52+67.01-1.97
=101.56

Frontier's Cash Conversion Cycle for the quarter that ended in Feb. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=44.32+105.91-1.55
=148.68

* 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.


Frontier  (FSE:4250) 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.


Frontier Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Frontier's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Frontier (FSE:4250) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
134-5 Kushigahama, Yamaguchi-ken, Shunan, JPN, 745-0805
Frontier Inc is engaged in manufacturing of vehicle accessories like side visor, car mat.

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