ICP (IC Power) Cash Conversion Cycle: -4.40 (As of Sep. 2016)


What is IC Power Cash Conversion Cycle?

IC Power ICP Cash Conversion Cycle is -4.40 as of Sep. 2016.

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

IC Power's Days Sales Outstanding for the three months ended in Sep. 2016 was 46.17.
IC Power's Days Inventory for the three months ended in Sep. 2016 was 19.79.
IC Power's Days Payable for the three months ended in Sep. 2016 was 70.36.
Therefore, IC Power's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2016 was -4.40.

IC Power  (NYSE:ICP) 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.

IC Power Cash Conversion Cycle Related Terms

IC Power Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for IC Power'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.

IC Power Cash Conversion Cycle Chart

IC Power Annual Data
Trend Dec12 Dec13 Dec14 Dec15
Cash Conversion Cycle
0.00 23.23 15.91 10.59

IC Power Quarterly Data
Dec12 Dec13 Mar14 Jun14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.68 1.87 -0.22 2.33 -4.40

ICP vs CETY, QPWR, PSPW: Cash Conversion Cycle Comparison

For the Utilities - Independent Power Producers subindustry, IC Power'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.

IC Power Cash Conversion Cycle vs Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, IC Power's Cash Conversion Cycle distribution charts can be found below:

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


IC Power 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.

IC Power's Cash Conversion Cycle for the fiscal year that ended in Dec. 2015 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=43.14+18.91-51.46
=10.59

IC Power's Cash Conversion Cycle for the quarter that ended in Sep. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=46.17+19.79-70.36
=-4.40

* 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 -4.40 mean?
IC Power (ICP) has a Cash Conversion Cycle of -4.40 as of Sep. 2016. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on IC Power and its competitors.
Is IC Power's Cash Conversion Cycle too high?
IC Power's current Cash Conversion Cycle is -4.40.
How does IC Power's Cash Conversion Cycle compare to CETY and QPWR?
IC Power's Cash Conversion Cycle of -4.40 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Cash Conversion Cycle is 24.63. 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 an Utilities - Independent Power Producers company?
The median Cash Conversion Cycle among Utilities - Independent Power Producers companies is 24.63, based on 416 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. 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 IC Power and its competitors. For the Utilities - Independent Power Producers industry, the median Cash Conversion Cycle is 24.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IC Power's current Cash Conversion Cycle is -4.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IC Power stock overvalued right now?
IC Power (ICP) has a current Cash Conversion Cycle of -4.40. The current Cash Conversion Cycle is -4.40. 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 IC Power (ICP), the current Cash Conversion Cycle is -4.40 as of Sep. 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.

IC Power Business Description

IC Power Pte Ltd is a holding company incorporated under the laws of Singapore in May 2015. The Company through its subsidiaries owns, develops and operates power facilities located in power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, HFO, diesel and wind. The Company has installed capacity of approximately 2,642 MW. The Company operates in geographical areas including Peru; Israel; Central America including Nicaragua, Guatemala, El Salvador & Panama; and other including Bolivia, Chile, Jamaica, Colombia & Dominican Republic. The Company owns, operates and develops power plants to generate and sell electricity to distribution companies and unregulated consumers under long-term PPAs and to the spot market. The Company Peru segment includes Kallpa I, Kallpa II, Kallpa III, Kallpa IV and Las Flores turbines. The Israel segment includes OPC plant. The Central America segment includes Corinto, Tipitapa Power, Amayo I, and Amayo II in Nicaragua; Puerto Quetzal plant in Guatemala; Nejapa plant in El Salvador, and Kanan plant in Panama. The Other segment includes Zongo Valley plants including Zongo, Tiquimani, Botijlaca, Cutichucho, Santa Rosa, Sainani, Chururaqui, Harca, Cahua, & Huaji; and Miguillas Valley plants including Miguillas, Angostura, Choquetanga, Carabuco, and El Alto-Kenko all in Bolivia; Central Cardones plant in Chile; Colmito plant in Colmito; CEPP I & CEPP II in Dominican Republic; JPPC plant in Jamaica; La Hocha, Purificación, and Entrerios plants in Colombia; Pedregal in Panama. The Company offers services to governments, local distribution companies, and/or non-regulated consumers, depending upon the operating company and the particular country of operation. Its customers include Edelnor S.A.A., Luz del Sur S.A.A., Hidrandina S.A., Edecañete S.A., Electro Sur Este S.A.A., Sociedad Eléctrica del Sur Oeste, S.A., Distribuidora de Electricidad del Norte S.A., Distribuidora de Electricidad del Sur S.A., Southern Perú Copper Corporation, Empresa de Distribución Eléctrica Chiriqui, S.A., Peruvian Investment Promotion Agency, Empresa de Distribución Eléctrica Metro Oeste S.A., and others. The Company's competitors include IEC, Dorad Energy Ltd., and other IPPs. The Company's business is subject to significant and diverse government regulation.