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Ericom Telekomunikasyon ve Enerji Teknolojileri AS (IST:ERICO) Cash Conversion Cycle : 28.66 (As of Sep. 2011)


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What is Ericom Telekomunikasyon ve Enerji Teknolojileri AS Cash Conversion Cycle?

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

Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Days Sales Outstanding for the three months ended in Sep. 2011 was 51.08.
Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Days Inventory for the three months ended in Sep. 2011 was 13.57.
Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Days Payable for the three months ended in Sep. 2011 was 35.99.
Therefore, Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2011 was 28.66.


Ericom Telekomunikasyon ve Enerji Teknolojileri AS Cash Conversion Cycle Historical Data

The historical data trend for Ericom Telekomunikasyon ve Enerji Teknolojileri AS'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.

* Premium members only.

Ericom Telekomunikasyon ve Enerji Teknolojileri AS Cash Conversion Cycle Chart

Ericom Telekomunikasyon ve Enerji Teknolojileri AS Annual Data
Trend Dec08 Dec09 Dec10
Cash Conversion Cycle
23.28 7.62 -0.49

Ericom Telekomunikasyon ve Enerji Teknolojileri AS Quarterly Data
Dec08 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only - -3.57 -286.48 25.40 28.66

Competitive Comparison of Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle

For the Industrial Distribution subindustry, Ericom Telekomunikasyon ve Enerji Teknolojileri AS'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.


Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle Distribution in the Industrial Distribution Industry

For the Industrial Distribution industry and Industrials sector, Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle falls into.



Ericom Telekomunikasyon ve Enerji Teknolojileri AS 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.

Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle for the fiscal year that ended in Dec. 2010 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=48.89+12.78-62.16
=-0.49

Ericom Telekomunikasyon ve Enerji Teknolojileri AS's Cash Conversion Cycle for the quarter that ended in Sep. 2011 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=51.08+13.57-35.99
=28.66

* 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.


Ericom Telekomunikasyon ve Enerji Teknolojileri AS  (IST:ERICO) 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.


Ericom Telekomunikasyon ve Enerji Teknolojileri AS Cash Conversion Cycle Related Terms

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Ericom Telekomunikasyon ve Enerji Teknolojileri AS (IST:ERICO) Business Description

Traded in Other Exchanges
N/A
Address
Buyukdere Cd. USO Center, Merkezi No:245 Kat:17, Istanbul, TUR
Ericom Telekomunikasyon ve Enerji Teknolojileri A.S. is engaged in the supply of energy storage systems. The Company markets lead acid, lithium-ferrite, and vanadium redox type flow battery systems to cellular communications services providers.

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