Empresa Siderurgica del PeruA (LIM:SIDERC1) Cash Conversion Cycle: 136.25 (As of Dec. 2016)


What is Empresa Siderurgica del PeruA Cash Conversion Cycle?

Empresa Siderurgica del PeruA LIM:SIDERC1 +0.08% Cash Conversion Cycle is 136.25 as of Dec. 2016.

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

Empresa Siderurgica del PeruA's Days Sales Outstanding for the six months ended in Dec. 2016 was 55.15.
Empresa Siderurgica del PeruA's Days Inventory for the six months ended in Dec. 2016 was 109.53.
Empresa Siderurgica del PeruA's Days Payable for the six months ended in Dec. 2016 was 28.43.
Therefore, Empresa Siderurgica del PeruA's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2016 was 136.25.

Empresa Siderurgica del PeruA  (LIM:SIDERC1) 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.

Empresa Siderurgica del PeruA Cash Conversion Cycle Related Terms

Empresa Siderurgica del PeruA Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Empresa Siderurgica del PeruA'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.

Empresa Siderurgica del PeruA Cash Conversion Cycle Chart

Empresa Siderurgica del PeruA Annual Data
Trend Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
Cash Conversion Cycle
Get a 7-Day Free Trial 246.48 168.10 134.73 145.35 136.25

Empresa Siderurgica del PeruA Semi-Annual Data
Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
Cash Conversion Cycle Get a 7-Day Free Trial 246.48 168.10 134.73 145.35 136.25

Empresa Siderurgica del PeruA Cash Conversion Cycle Competitor Comparison

For the Steel subindustry, Empresa Siderurgica del PeruA'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.

Empresa Siderurgica del PeruA Cash Conversion Cycle vs Steel Industry

For the Steel industry and Basic Materials sector, Empresa Siderurgica del PeruA's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Empresa Siderurgica del PeruA's Cash Conversion Cycle falls into.


Empresa Siderurgica del PeruA 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.

Empresa Siderurgica del PeruA's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=55.15+109.53-28.43
=136.25

Empresa Siderurgica del PeruA's Cash Conversion Cycle for the quarter that ended in Dec. 2016 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=55.15+109.53-28.43
=136.25

* 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 136.25 mean?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a Cash Conversion Cycle of 136.25 as of Dec. 2016. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Empresa Siderurgica del PeruA and its competitors.
Is Empresa Siderurgica del PeruA's Cash Conversion Cycle too high?
Empresa Siderurgica del PeruA's current Cash Conversion Cycle is 136.25. The Steel industry median Cash Conversion Cycle is 94.32. Empresa Siderurgica del PeruA's value of 136.25 is 44.5% above this industry median.
How does Empresa Siderurgica del PeruA's Cash Conversion Cycle compare to competitors?
Empresa Siderurgica del PeruA's Cash Conversion Cycle of 136.25 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 94.32. Empresa Siderurgica del PeruA's value of 136.25 is 44.5% 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 Steel company?
The median Cash Conversion Cycle among Steel companies is 94.32, based on 609 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. Empresa Siderurgica del PeruA's current Cash Conversion Cycle of 136.25 is 44.5% 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 Empresa Siderurgica del PeruA and its competitors. For the Steel industry, the median Cash Conversion Cycle is 94.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Siderurgica del PeruA's current Cash Conversion Cycle is 136.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Siderurgica del PeruA stock overvalued right now?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a current Cash Conversion Cycle of 136.25. The current Cash Conversion Cycle is 136.25 and 44.5% above the Steel industry median of 94.32. 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 Empresa Siderurgica del PeruA (LIM:SIDERC1), the current Cash Conversion Cycle is 136.25 as of Dec. 2016. 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.

Empresa Siderurgica del PeruA Business Description

Address Avenue Juan de Arona 151, Tower B, Floor 5, Lima, PER
Empresa Siderurgica del Peru SAA is a steel manufacturing company. The company produces long steel designed for the construction and mining industry. The company provides long, flat, tubular, and road products.