African Dawn Capital's Days Sales Outstanding for the
six
months ended in Aug. 2024 was 222.51.
African Dawn Capital's Days Inventory for the
six
months ended in Aug. 2024 was 0.
African Dawn Capital's Days Payable for the
six
months ended in Aug. 2024 was 107.66.
Therefore, African Dawn Capital's Cash Conversion Cycle (CCC) for the
six
months ended in Aug. 2024 was 114.85.
African Dawn Capital (JSE:ADW) 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.
African Dawn Capital Cash Conversion Cycle Related Terms
African Dawn Capital Cash Conversion Cycle Historical Data
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The historical data trend for African Dawn Capital'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.
JSE:ADW vs V, MA, AXP: Cash Conversion Cycle Comparison
For the Credit Services subindustry, African Dawn Capital'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.
African Dawn Capital Cash Conversion Cycle vs Credit Services Industry
For the Credit Services industry and Financial Services sector, African Dawn Capital's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where African Dawn Capital's Cash Conversion Cycle falls into.
African Dawn Capital 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.
African Dawn Capital's Cash Conversion Cycle for the fiscal year that ended in Feb. 2024 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.
African Dawn Capital (JSE:ADW) has a Cash Conversion Cycle of 114.85 as of Aug. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on African Dawn Capital and its competitors.
Is African Dawn Capital's Cash Conversion Cycle too high?
African Dawn Capital's current Cash Conversion Cycle is 114.85. The Credit Services industry median Cash Conversion Cycle is 1.48. African Dawn Capital's value of 114.85 is 7686.4% above this industry median. Overall, African Dawn Capital has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does African Dawn Capital's Cash Conversion Cycle compare to V and MA?
African Dawn Capital's Cash Conversion Cycle of 114.85 can be compared against companies in the Credit Services industry. The industry median Cash Conversion Cycle is 1.48. African Dawn Capital's value of 114.85 is 7686.4% 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 Credit Services company?
The median Cash Conversion Cycle among Credit Services companies is 1.48, based on 374 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. African Dawn Capital's current Cash Conversion Cycle of 114.85 is 7686.4% 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 African Dawn Capital and its competitors. For the Credit Services industry, the median Cash Conversion Cycle is 1.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. African Dawn Capital's current Cash Conversion Cycle is 114.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Dawn Capital stock overvalued right now?
African Dawn Capital (JSE:ADW) has a current Cash Conversion Cycle of 114.85. The current Cash Conversion Cycle is 114.85 and 7686.4% above the Credit Services industry median of 1.48. African Dawn Capital's overall GF Score™ is 11/100. 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 African Dawn Capital (JSE:ADW), the current Cash Conversion Cycle is 114.85 as of Aug. 2024. 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.
African Dawn Capital Ltd operates as a microfinance company. The company's operating segment includes Investment advisory and investment management, Microfinance, and Head Office segment. It generates maximum revenue from the Microfinance segment. Geographically, the company operates only in South Africa.
11GF Score
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