Avanti Communications Group (LSE:AVN) Cash Conversion Cycle: 112.43 (As of Jun. 2020)

What is Avanti Communications Group Cash Conversion Cycle?

Avanti Communications Group LSE:AVN -87.07% Cash Conversion Cycle is 112.43 as of Jun. 2020. The stock has 7 warning signs investors should review.

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

Avanti Communications Group's Days Sales Outstanding for the six months ended in Jun. 2020 was 78.81.
Avanti Communications Group's Days Inventory for the six months ended in Jun. 2020 was 184.71.
Avanti Communications Group's Days Payable for the six months ended in Jun. 2020 was 151.09.
Therefore, Avanti Communications Group's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2020 was 112.43.

Avanti Communications Group (LSE:AVN) 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.

Avanti Communications Group Cash Conversion Cycle Related Terms

Avanti Communications Group Cash Conversion Cycle Historical Data

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The historical data trend for Avanti Communications Group'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.

Avanti Communications Group Cash Conversion Cycle Chart

Avanti Communications Group Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Dec19

Cash Conversion Cycle

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36.89

43.23

-95.29

36.54

76.70

Avanti Communications Group Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Jun19	Dec19	Jun20
Cash Conversion Cycle	Get a 7-Day Free Trial															-19.18	-804.35	-346.44	-123.57	112.43

LSE:AVN vs FNGR, FTRCQ, SYTE: Cash Conversion Cycle Comparison

For the Telecom Services subindustry, Avanti Communications Group'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.

Avanti Communications Group Cash Conversion Cycle vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Avanti Communications Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Avanti Communications Group's Cash Conversion Cycle falls into.

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Avanti Communications Group 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.

Avanti Communications Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2019 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	109.77	+	141.17	-	174.24
	=	76.70

Avanti Communications Group's Cash Conversion Cycle for the quarter that ended in Jun. 2020 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	78.81	+	184.71	-	151.09
	=	112.43

Frequently Asked Questions Learn more about Cash Conversion Cycle →

What does a Cash Conversion Cycle of 112.43 mean?

Avanti Communications Group (LSE:AVN) has a Cash Conversion Cycle of 112.43 as of Jun. 2020. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Avanti Communications Group and its competitors.

Is Avanti Communications Group's Cash Conversion Cycle too high?

Avanti Communications Group's current Cash Conversion Cycle is 112.43.

How does Avanti Communications Group's Cash Conversion Cycle compare to FNGR and FTRCQ?

Avanti Communications Group's Cash Conversion Cycle of 112.43 can be compared against companies in the Telecommunication Services industry. 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 Telecommunication Services company?

A good Cash Conversion Cycle depends on the Telecommunication Services industry context. 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 Avanti Communications Group and its competitors. Avanti Communications Group's current Cash Conversion Cycle is 112.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Avanti Communications Group stock overvalued right now?

Avanti Communications Group (LSE:AVN) has a current Cash Conversion Cycle of 112.43. The current Cash Conversion Cycle is 112.43. 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 Avanti Communications Group (LSE:AVN), the current Cash Conversion Cycle is 112.43 as of Jun. 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.

Avanti Communications Group Business Description

Industry Communication Services Telecommunication Services

Comparable Companies FNGR FTRCQ SYTE WINMQ KTEL SITO MTSL IQST HMMR DTGI VZ T HKSE:00941 TMUS TSE:9437 TSE:9984 TSE:9432 XTER:DTE TSE:9433 TSE:9434

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB

Website http://www.avantiplc.com

Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.