PSV Holdings (JSE:PSV) Cash Conversion Cycle: 14.88 (As of Aug. 2019)


What is PSV Holdings Cash Conversion Cycle?

PSV Holdings JSE:PSV Cash Conversion Cycle is 14.88 as of Aug. 2019.

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

PSV Holdings's Days Sales Outstanding for the six months ended in Aug. 2019 was 63.85.
PSV Holdings's Days Inventory for the six months ended in Aug. 2019 was 25.44.
PSV Holdings's Days Payable for the six months ended in Aug. 2019 was 74.41.
Therefore, PSV Holdings's Cash Conversion Cycle (CCC) for the six months ended in Aug. 2019 was 14.88.


PSV Holdings  (JSE:PSV) 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.


PSV Holdings Cash Conversion Cycle Related Terms


PSV Holdings Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for PSV Holdings'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.

PSV Holdings Cash Conversion Cycle Chart

PSV Holdings Annual Data
Trend Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17 Feb18 Feb19
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 66.87 24.54 18.43 35.75 18.61

PSV Holdings Semi-Annual Data
Feb10 Aug10 Feb11 Aug11 Feb12 Aug12 Feb13 Aug13 Feb14 Aug14 Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19
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 44.79 7.51 7.75 5.95 14.88

JSE:PSV vs HON, MMM, GE: Cash Conversion Cycle Comparison

For the Specialty Industrial Machinery subindustry, PSV Holdings'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.


PSV Holdings Cash Conversion Cycle vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, PSV Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where PSV Holdings's Cash Conversion Cycle falls into.



PSV Holdings 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.

PSV Holdings's Cash Conversion Cycle for the fiscal year that ended in Feb. 2019 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=49.95+36.79-68.13
=18.61

PSV Holdings's Cash Conversion Cycle for the quarter that ended in Aug. 2019 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=63.85+25.44-74.41
=14.88

* 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 14.88 mean?
PSV Holdings (JSE:PSV) has a Cash Conversion Cycle of 14.88 as of Aug. 2019. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PSV Holdings and its competitors.
Is PSV Holdings' Cash Conversion Cycle too high?
PSV Holdings' current Cash Conversion Cycle is 14.88. The Industrial Products industry median Cash Conversion Cycle is 122.24. PSV Holdings' value of 14.88 is 87.8% below this industry median.
How does PSV Holdings' Cash Conversion Cycle compare to HON and MMM?
PSV Holdings' Cash Conversion Cycle of 14.88 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.24. PSV Holdings' value of 14.88 is 87.8% 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 an Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.24, based on 3,031 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. PSV Holdings's current Cash Conversion Cycle of 14.88 is 87.8% 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 PSV Holdings and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PSV Holdings's current Cash Conversion Cycle is 14.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PSV Holdings stock overvalued right now?
PSV Holdings (JSE:PSV) has a current Cash Conversion Cycle of 14.88. The current Cash Conversion Cycle is 14.88 and 87.8% below the Industrial Products industry median of 122.24. 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 PSV Holdings (JSE:PSV), the current Cash Conversion Cycle is 14.88 as of Aug. 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.

PSV Holdings Business Description

Address Corner of Serenade & North Reef Roads, Henville Ext. Elandsfontein Rail, Germiston, ZAF, 1429
PSV Holdings Ltd is an industrial engineering holding company. It is engaged in providing steel, stainless steel, industrial supplies, specialized control valves, engineering linings, cryogenic equipment and storage tankers and also provides technology to the mining, water, wastewater management, health care, infrastructure and manufacturing sectors in South Africa and Africa. The company operates in two segments namely Industrial Supplies that includes steel, piping, industrial tools and consumable supplies and others; and Specialized Services that includes comprehensive cryogenic and gas systems. It derives key revenue from the Industrial supplies segment. Geographically, the group has operations in South Africa and other countries.