GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Frontera Resources Corp (LSE:FRR) » Definitions » Cash Conversion Cycle

Frontera Resources (LSE:FRR) Cash Conversion Cycle : 145.74 (As of Jun. 2018)


View and export this data going back to 2005. Start your Free Trial

What is Frontera Resources Cash Conversion Cycle?

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

Frontera Resources's Days Sales Outstanding for the six months ended in Jun. 2018 was 112.77.
Frontera Resources's Days Inventory for the six months ended in Jun. 2018 was 334.12.
Frontera Resources's Days Payable for the six months ended in Jun. 2018 was 301.15.
Therefore, Frontera Resources's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2018 was 145.74.


Frontera Resources Cash Conversion Cycle Historical Data

The historical data trend for Frontera Resources'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.

* Premium members only.

Frontera Resources Cash Conversion Cycle Chart

Frontera Resources Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 249.11 198.96 197.98 117.89 234.10

Frontera Resources Semi-Annual Data
Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18
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 200.43 191.58 110.69 264.41 145.74

Competitive Comparison of Frontera Resources's Cash Conversion Cycle

For the Oil & Gas E&P subindustry, Frontera Resources'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.


Frontera Resources's Cash Conversion Cycle Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Frontera Resources's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Frontera Resources's Cash Conversion Cycle falls into.



Frontera Resources 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.

Frontera Resources's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=154.77+265.4-186.07
=234.10

Frontera Resources's Cash Conversion Cycle for the quarter that ended in Jun. 2018 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=112.77+334.12-301.15
=145.74

* 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.


Frontera Resources  (LSE:FRR) 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.


Frontera Resources Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Frontera Resources's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Frontera Resources (LSE:FRR) Business Description

Traded in Other Exchanges
N/A
Address
3040 Post Oak Boulevard, Suite 1100, Houston, TX, USA, 77056
Frontera Resources Corp is an international oil and gas exploration and production company. The company, along with its subsidiaries is principally engaged in the development of oil and gas projects. The company develops reserves in known hydrocarbon-bearing basins in the Republic of Georgia. Frontera's current focus is targeted on exploiting a Greater Black Sea initiative, regionally building from its core operations in the country of Georgia.

Frontera Resources (LSE:FRR) Headlines

No Headlines