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Key Energy Services's Days Sales Outstanding for the
three
months ended in Sep. 2020 was 49.44.
Key Energy Services's Days Inventory for the
three
months ended in Sep. 2020 was 30.42.
Key Energy Services's Days Payable for the
three
months ended in Sep. 2020 was 19.08.
Therefore, Key Energy Services's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2020 was 60.78.
Key Energy Services (OTCPK:KEGX) 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.
Key Energy Services Cash Conversion Cycle Related Terms
Key Energy Services Cash Conversion Cycle Historical Data
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The historical data trend for Key Energy Services'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.
KEGX vs GEOS, NGS, PKDC: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Key Energy Services'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.
Key Energy Services Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Key Energy Services's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Key Energy Services's Cash Conversion Cycle falls into.
Key Energy Services 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.
Key Energy Services's Cash Conversion Cycle for the fiscal year that ended in Dec. 2019 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.
Key Energy Services (KEGX) has a Cash Conversion Cycle of 60.78 as of Sep. 2020. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Key Energy Services and its competitors.
Is Key Energy Services' Cash Conversion Cycle too high?
Key Energy Services' current Cash Conversion Cycle is 60.78. The Oil & Gas industry median Cash Conversion Cycle is 17.06. Key Energy Services' value of 60.78 is 256.3% above this industry median. Overall, Key Energy Services has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Key Energy Services' Cash Conversion Cycle compare to GEOS and NGS?
Key Energy Services' Cash Conversion Cycle of 60.78 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 17.06. Key Energy Services' value of 60.78 is 256.3% 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 an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 17.06, based on 927 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. Key Energy Services's current Cash Conversion Cycle of 60.78 is 256.3% 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 Key Energy Services and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 17.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Key Energy Services's current Cash Conversion Cycle is 60.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Key Energy Services stock overvalued right now?
Key Energy Services (KEGX) has a current Cash Conversion Cycle of 60.78. The current Cash Conversion Cycle is 60.78 and 256.3% above the Oil & Gas industry median of 17.06. Key Energy Services' overall GF Score™ is 12/100. 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 Key Energy Services (KEGX), the current Cash Conversion Cycle is 60.78 as of Sep. 2020. 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.
Key Energy Services Inc is an onshore, rig-based well-servicing contractor. It provides a full range of well-services to oil companies, and independent oil and natural gas production companies. Its services include rig-based and coiled tubing-based well maintenance and workover services, well completion and re-completion services, fluid management services, fishing, and rental services, and other ancillary oilfield services. Its segment includes Rig Services, Fishing, and Rental Services, Coiled Tubing Services and Fluid Management Services within the United States. The company derives the maximum revenue from the Rig Services segment.
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