GigaCloud Technology (GigaCloud Technology) Cash Conversion Cycle : 61.51 (As of Mar. 2024)

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What is GigaCloud Technology Cash Conversion Cycle?

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

GigaCloud Technology's Days Sales Outstanding for the three months ended in Mar. 2024 was 21.49.
GigaCloud Technology's Days Inventory for the three months ended in Mar. 2024 was 78.72.
GigaCloud Technology's Days Payable for the three months ended in Mar. 2024 was 38.7.
Therefore, GigaCloud Technology's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 61.51.

GigaCloud Technology Cash Conversion Cycle Historical Data

The historical data trend for GigaCloud Technology'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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GigaCloud Technology Cash Conversion Cycle Chart

GigaCloud Technology Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

62.34

59.60

63.04

61.01

GigaCloud Technology Quarterly Data
	Dec19	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Cash Conversion Cycle	Get a 7-Day Free Trial										63.92	57.23	48.36	44.15	61.51

Competitive Comparison of GigaCloud Technology's Cash Conversion Cycle

For the Software - Infrastructure subindustry, GigaCloud Technology'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.

GigaCloud Technology's Cash Conversion Cycle Distribution in the Software Industry

For the Software industry and Technology sector, GigaCloud Technology's Cash Conversion Cycle distribution charts can be found below:

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

GigaCloud Technology 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.

GigaCloud Technology's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	22.3	+	74.6	-	35.89
	=	61.01

GigaCloud Technology's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	21.49	+	78.72	-	38.7
	=	61.51

GigaCloud Technology (NAS:GCT) 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.

GigaCloud Technology Cash Conversion Cycle Related Terms

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GigaCloud Technology (GigaCloud Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » GigaCloud Technology Inc (NAS:GCT) » Definitions » Cash Conversion Cycle

Comparable Companies

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Traded in Other Exchanges

N/A

Address

24-30 Ice House Street, Unit A, 12th Floor, Shun Ho Tower, Central, Hong Kong, HKG

Website

https://www.gigacloudtech.com

GigaCloud Technology Inc end-to-end B2B e-commerce solutions for large parcel merchandise. Its B2B e-commerce platform, which refers to as the GigaCloud Marketplace, integrates everything from discovery, payments, and logistics tools into one easy-to-use platform. It offers online and offline integrated cross-border transaction and delivery services for furniture and large merchandise. Its marketplace seamlessly connects manufacturers in Asia, with resellers in the U.S., Asia, and Europe, to execute cross-border transactions with confidence, speed, and efficiency. It offers a truly comprehensive solution that transports products from the manufacturer's warehouse to end customers, all at one fixed price.