New World Resources's Days Sales Outstanding for the
three
months ended in Dec. 2015 was 28.44.
New World Resources's Days Inventory for the
three
months ended in Dec. 2015 was 28.45.
New World Resources's Days Payable for the
three
months ended in Dec. 2015 was 55.76.
Therefore, New World Resources's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2015 was 1.13.
New World Resources (LSE:NWR) 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.
New World Resources Cash Conversion Cycle Related Terms
New World Resources Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for New World 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.
LSE:NWR vs WMLPQ: Cash Conversion Cycle Comparison
For the Thermal Coal subindustry, New World 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.
New World Resources Cash Conversion Cycle vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, New World Resources's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where New World Resources's Cash Conversion Cycle falls into.
New World 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.
New World Resources's Cash Conversion Cycle for the fiscal year that ended in Dec. 2015 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.
New World Resources (LSE:NWR) has a Cash Conversion Cycle of 1.13 as of Dec. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on New World Resources and its competitors.
Is New World Resources' Cash Conversion Cycle too high?
New World Resources' current Cash Conversion Cycle is 1.13. The Other Energy Sources industry median Cash Conversion Cycle is 13.61. New World Resources' value of 1.13 is 91.7% below this industry median.
How does New World Resources' Cash Conversion Cycle compare to WMLPQ?
New World Resources' Cash Conversion Cycle of 1.13 can be compared against companies in the Other Energy Sources industry. The industry median Cash Conversion Cycle is 13.61. New World Resources' value of 1.13 is 91.7% below 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 Other Energy Sources company?
The median Cash Conversion Cycle among Other Energy Sources companies is 13.61, based on 131 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. New World Resources's current Cash Conversion Cycle of 1.13 is 91.7% below 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 New World Resources and its competitors. For the Other Energy Sources industry, the median Cash Conversion Cycle is 13.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New World Resources's current Cash Conversion Cycle is 1.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Resources stock overvalued right now?
New World Resources (LSE:NWR) has a current Cash Conversion Cycle of 1.13. The current Cash Conversion Cycle is 1.13 and 91.7% below the Other Energy Sources industry median of 13.61. 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 New World Resources (LSE:NWR), the current Cash Conversion Cycle is 1.13 as of Dec. 2015. 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.
New World Resources PLC is a coking and thermal coal producer for the steel and energy sectors in Central Europe. The company's hard coal reserves are situated in the Upper Silesian basin, covering an area of approximately 120 square kilometers. The company's customer includes ArcelorMittal, U.S. Steel, voestalpine, Dalkia, CEZ, Verbund, Moravia Steel, and ThyssenKrupp. New World Resources operates in Czech Republic, Slovakia, Austria, Poland, and Germany.
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