Alternative Energy's Days Sales Outstanding for the
six
months ended in Jun. 2014 was -129.07.
Alternative Energy's Days Inventory for the
six
months ended in Jun. 2014 was 0.
Alternative Energy's Days Payable for the
six
months ended in Jun. 2014 was 5312.05.
Therefore, Alternative Energy's Cash Conversion Cycle (CCC) for the
six
months ended in Jun. 2014 was -5,441.12.
Alternative Energy (LSE:ALR) 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.
Alternative Energy Cash Conversion Cycle Related Terms
Alternative Energy Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Alternative Energy'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.
Alternative Energy Cash Conversion Cycle Competitor Comparison
For the Utilities - Independent Power Producers subindustry, Alternative Energy'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.
Alternative Energy Cash Conversion Cycle vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Alternative Energy's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Alternative Energy's Cash Conversion Cycle falls into.
Alternative Energy 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.
Alternative Energy's Cash Conversion Cycle for the fiscal year that ended in Dec. 2013 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.
What does a Cash Conversion Cycle of -5,441.12 mean?
Alternative Energy (LSE:ALR) has a Cash Conversion Cycle of -5,441.12 as of Jun. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Alternative Energy and its competitors.
Is Alternative Energy's Cash Conversion Cycle too high?
Alternative Energy's current Cash Conversion Cycle is -5,441.12.
How does Alternative Energy's Cash Conversion Cycle compare to competitors?
Alternative Energy's Cash Conversion Cycle of -5,441.12 can be compared against companies in the Utilities - Independent Power Producers industry. The industry median Cash Conversion Cycle is 25.01. 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 Utilities - Independent Power Producers company?
The median Cash Conversion Cycle among Utilities - Independent Power Producers companies is 25.01, based on 416 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. 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 Alternative Energy and its competitors. For the Utilities - Independent Power Producers industry, the median Cash Conversion Cycle is 25.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alternative Energy's current Cash Conversion Cycle is -5,441.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alternative Energy stock overvalued right now?
Alternative Energy (LSE:ALR) has a current Cash Conversion Cycle of -5,441.12. The current Cash Conversion Cycle is -5,441.12. 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 Alternative Energy (LSE:ALR), the current Cash Conversion Cycle is -5,441.12 as of Jun. 2014. 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.
Alternative Energy Ltd provides technology, hardware and equipment for renewable energy and green energy solutions. Its solutions include Renewable Energy, The E-Roof - The PC of Energy, and AEL Energy Saving products such as eLIVE and eLUMEN. It also makes acquisitions to develop energy technologies, business and companies which offer an alternative to conventional fossil fuel and nuclear methods of generating household and industrial energy, as well as providing management services to its subsidiaries.
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