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Prime Focus London (LSE:PFO) Cash Conversion Cycle : -16,283.72 (As of Mar. 2013)


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What is Prime Focus London Cash Conversion Cycle?

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

Prime Focus London's Days Sales Outstanding for the six months ended in Mar. 2013 was 99.45.
Prime Focus London's Days Inventory for the six months ended in Mar. 2013 was 54.5.
Prime Focus London's Days Payable for the six months ended in Mar. 2013 was 16437.67.
Therefore, Prime Focus London's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2013 was -16,283.72.


Prime Focus London Cash Conversion Cycle Historical Data

The historical data trend for Prime Focus London'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.

Prime Focus London Cash Conversion Cycle Chart

Prime Focus London Annual Data
Trend Aug03 Aug04 Aug05 Aug06 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -184.77 -562.98 -146.16 -253.75 -410.66

Prime Focus London Semi-Annual Data
Feb03 Aug03 Feb04 Aug04 Feb05 Aug05 Feb06 Aug06 Sep07 Mar08 Sep08 Mar09 Sep09 Mar10 Sep10 Mar11 Sep11 Mar12 Sep12 Mar13
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 Premium Member Only -127.90 -333.32 -651.13 -469.24 -16,283.72

Competitive Comparison of Prime Focus London's Cash Conversion Cycle

For the Broadcasting subindustry, Prime Focus London'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.


Prime Focus London's Cash Conversion Cycle Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Prime Focus London's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Prime Focus London's Cash Conversion Cycle falls into.



Prime Focus London 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.

Prime Focus London's Cash Conversion Cycle for the fiscal year that ended in Mar. 2013 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=87.47+4.62-502.75
=-410.66

Prime Focus London's Cash Conversion Cycle for the quarter that ended in Mar. 2013 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=99.45+54.5-16437.67
=-16,283.72

* 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.


Prime Focus London  (LSE:PFO) 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.


Prime Focus London Cash Conversion Cycle Related Terms

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Prime Focus London Business Description

Traded in Other Exchanges
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Address
Prime Focus London PLC is incorporated and domiciled in England. The company and its subsidiaries are technology based service providers to the media and entertainment industry. It is a part of Prime Focus, providing services to the Film, Broadcast, Commercials, Internet and Media industries. It offers end-to-end solution, from pre-production to final delivery including video and audio post-production, production services and on-set supervision, Digital Intermediate, versioning and adaptation, visual effects and animation.

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