Wirecard AG's Days Sales Outstanding for the
three
months ended in Sep. 2019 was 35.1.
Wirecard AG's Days Inventory for the
three
months ended in Sep. 2019 was 1.78.
Wirecard AG's Days Payable for the
three
months ended in Sep. 2019 was 17.5.
Therefore, Wirecard AG's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2019 was 19.38.
Wirecard AG (HAM:WDI) 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.
Wirecard AG Cash Conversion Cycle Related Terms
Wirecard AG Cash Conversion Cycle Historical Data
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The historical data trend for Wirecard AG'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.
HAM:WDI vs CRM, INTU, NOW: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Wirecard AG'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.
Wirecard AG Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Wirecard AG's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Wirecard AG's Cash Conversion Cycle falls into.
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.
Wirecard AG's Cash Conversion Cycle for the fiscal year that ended in Dec. 2018 is calculated as
* 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.
Wirecard AG (HAM:WDI) has a Cash Conversion Cycle of 19.38 as of Sep. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Wirecard AG and its competitors.
Is Wirecard AG's Cash Conversion Cycle too high?
Wirecard AG's current Cash Conversion Cycle is 19.38. The Software industry median Cash Conversion Cycle is 32.25. Wirecard AG's value of 19.38 is 39.9% below this industry median. Overall, Wirecard AG has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Wirecard AG's Cash Conversion Cycle compare to CRM and INTU?
Wirecard AG's Cash Conversion Cycle of 19.38 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.25. Wirecard AG's value of 19.38 is 39.9% below 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.25, based on 2,803 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. Wirecard AG's current Cash Conversion Cycle of 19.38 is 39.9% below 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 Wirecard AG and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wirecard AG's current Cash Conversion Cycle is 19.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wirecard AG stock overvalued right now?
Wirecard AG (HAM:WDI) has a current Cash Conversion Cycle of 19.38. The current Cash Conversion Cycle is 19.38 and 39.9% below the Software industry median of 32.25. Wirecard AG's overall GF Score™ is 10/100. 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 Wirecard AG (HAM:WDI), the current Cash Conversion Cycle is 19.38 as of Sep. 2019. 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.
Wirecard AG is a Germany-based provider of software solutions to the financial services industry. The firm's operations are organized in three segments: Payment Processing and Risk Management, which offers electronic payment processing services; Acquiring and Issuing, which issues credit cards and statements for payments and transactions; and Call Center and Communication Services, which offers relationship management services to corporate customers. The firm has operations in Europe, the United States, and the Asia-Pacific region.
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