GLRI (Glori Energy) Cash Conversion Cycle: 23.40 (As of Dec. 2016)


What is Glori Energy Cash Conversion Cycle?

Glori Energy GLRI Cash Conversion Cycle is 23.40 as of Dec. 2016.

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

Glori Energy's Days Sales Outstanding for the three months ended in Dec. 2016 was 63.73.
Glori Energy's Days Inventory for the three months ended in Dec. 2016 was 0.
Glori Energy's Days Payable for the three months ended in Dec. 2016 was 40.33.
Therefore, Glori Energy's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2016 was 23.40.

Glori Energy  (OTCPK:GLRI) 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.

Glori Energy Cash Conversion Cycle Related Terms

Glori Energy Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Glori Energy'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.

Glori Energy Cash Conversion Cycle Chart

Glori Energy Annual Data
Trend Mar12 Mar13 Mar14 Dec15 Dec16
Cash Conversion Cycle
0.00 0.00 0.00 28.79 33.03

Glori Energy Quarterly Data
Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16
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 47.91 47.88 23.04 34.18 23.40

GLRI vs ALYE, FOSI: Cash Conversion Cycle Comparison

For the Shell Companies subindustry, Glori Energy'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.

Glori Energy Cash Conversion Cycle vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Glori Energy's Cash Conversion Cycle distribution charts can be found below:

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


Glori Energy 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.

Glori Energy's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=83.28+0-50.25
=33.03

Glori Energy's Cash Conversion Cycle for the quarter that ended in Dec. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=63.73+0-40.33
=23.40

* 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 23.40 mean?
Glori Energy (GLRI) has a Cash Conversion Cycle of 23.40 as of Dec. 2016. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Glori Energy and its competitors.
Is Glori Energy's Cash Conversion Cycle too high?
Glori Energy's current Cash Conversion Cycle is 23.40. The Diversified Financial Services industry median Cash Conversion Cycle is 1.19. Glori Energy's value of 23.40 is 1874.7% above this industry median.
How does Glori Energy's Cash Conversion Cycle compare to ALYE and FOSI?
Glori Energy's Cash Conversion Cycle of 23.40 can be compared against companies in the Diversified Financial Services industry. The industry median Cash Conversion Cycle is 1.19. Glori Energy's value of 23.40 is 1874.7% above this benchmark. 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 Diversified Financial Services company?
The median Cash Conversion Cycle among Diversified Financial Services companies is 1.19, based on 92 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Glori Energy's current Cash Conversion Cycle of 23.40 is 1874.7% above the industry median. 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 Glori Energy and its competitors. For the Diversified Financial Services industry, the median Cash Conversion Cycle is 1.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Glori Energy's current Cash Conversion Cycle is 23.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Glori Energy stock overvalued right now?
Glori Energy (GLRI) has a current Cash Conversion Cycle of 23.40. The current Cash Conversion Cycle is 23.40 and 1874.7% above the Diversified Financial Services industry median of 1.19. 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 Glori Energy (GLRI), the current Cash Conversion Cycle is 23.40 as of Dec. 2016. 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.

Glori Energy Business Description

Address 957 Nasa Parkway, Suite 571, Houston, TX, USA, 77058
Glori Energy Inc is a development stage company.