JACO (Jaco Electronics) Cash Conversion Cycle: 112.46 (As of Mar. 2009)


What is Jaco Electronics Cash Conversion Cycle?

Jaco Electronics JACO Cash Conversion Cycle is 112.46 as of Mar. 2009.

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

Jaco Electronics's Days Sales Outstanding for the three months ended in Mar. 2009 was 134.76.
Jaco Electronics's Days Inventory for the three months ended in Mar. 2009 was 96.45.
Jaco Electronics's Days Payable for the three months ended in Mar. 2009 was 118.75.
Therefore, Jaco Electronics's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2009 was 112.46.


Jaco Electronics  (OTCPK:JACO) 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.


Jaco Electronics Cash Conversion Cycle Related Terms


Jaco Electronics Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Jaco Electronics'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.

Jaco Electronics Cash Conversion Cycle Chart

Jaco Electronics Annual Data
Trend Jun99 Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Jun06 Jun07 Jun08
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 59.81 69.00 69.70 65.43 74.29

Jaco Electronics Quarterly Data
Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09
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 76.28 65.69 63.41 167.06 112.46

JACO vs OMPS: Cash Conversion Cycle Comparison

For the Electronics & Computer Distribution subindustry, Jaco Electronics'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.


Jaco Electronics Cash Conversion Cycle vs Hardware Industry

For the Hardware industry and Technology sector, Jaco Electronics's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Jaco Electronics's Cash Conversion Cycle falls into.



Jaco Electronics 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.

Jaco Electronics's Cash Conversion Cycle for the fiscal year that ended in Jun. 2008 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=64.38+73.07-63.16
=74.29

Jaco Electronics's Cash Conversion Cycle for the quarter that ended in Mar. 2009 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=134.76+96.45-118.75
=112.46

* 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 112.46 mean?
Jaco Electronics (JACO) has a Cash Conversion Cycle of 112.46 as of Mar. 2009. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Jaco Electronics and its competitors.
Is Jaco Electronics' Cash Conversion Cycle too high?
Jaco Electronics' current Cash Conversion Cycle is 112.46. The Hardware industry median Cash Conversion Cycle is 98.95. Jaco Electronics' value of 112.46 is 13.7% above this industry median.
How does Jaco Electronics' Cash Conversion Cycle compare to OMPS?
Jaco Electronics' Cash Conversion Cycle of 112.46 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Jaco Electronics' value of 112.46 is 13.7% 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,478 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. Jaco Electronics's current Cash Conversion Cycle of 112.46 is 13.7% 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 Jaco Electronics and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jaco Electronics's current Cash Conversion Cycle is 112.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jaco Electronics stock overvalued right now?
Jaco Electronics (JACO) has a current Cash Conversion Cycle of 112.46. The current Cash Conversion Cycle is 112.46 and 13.7% above the Hardware industry median of 98.95. 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 Jaco Electronics (JACO), the current Cash Conversion Cycle is 112.46 as of Mar. 2009. 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.

Jaco Electronics Business Description

Address 145 Oser Avenue, Hauppauge, NY, USA, 11788
Jaco Electronics Inc is engaged in the distribution of electronic components. Its products include embedded box containers, inverters, LCD monitors, open frame monitors, single board computers, among others.