Sphere Medical Holding (LSE:SPHR) Cash Conversion Cycle : 3,800.30 (As of Dec. 2016)

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What is Sphere Medical Holding Cash Conversion Cycle?

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

Sphere Medical Holding's Days Sales Outstanding for the six months ended in Dec. 2016 was 182.5.
Sphere Medical Holding's Days Inventory for the six months ended in Dec. 2016 was 4616.18.
Sphere Medical Holding's Days Payable for the six months ended in Dec. 2016 was 998.38.
Therefore, Sphere Medical Holding's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2016 was 3,800.30.

Sphere Medical Holding Cash Conversion Cycle Historical Data

The historical data trend for Sphere Medical Holding'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.

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Sphere Medical Holding Cash Conversion Cycle Chart

Sphere Medical Holding Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Cash Conversion Cycle

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-4,073.48

-7,603.40

-12,794.56

12,337.00

4,529.05

Sphere Medical Holding Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16
Cash Conversion Cycle	Get a 7-Day Free Trial						-1,201.45	73.00	8,258.13	10,341.67	3,800.30

Competitive Comparison of Sphere Medical Holding's Cash Conversion Cycle

For the Medical Devices subindustry, Sphere Medical Holding'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.

Sphere Medical Holding's Cash Conversion Cycle Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Sphere Medical Holding's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Sphere Medical Holding's Cash Conversion Cycle falls into.

Sphere Medical Holding 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.

Sphere Medical Holding's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	176.42	+	7400.38	-	3047.75
	=	4,529.05

Sphere Medical Holding's Cash Conversion Cycle for the quarter that ended in Dec. 2016 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	182.5	+	4616.18	-	998.38
	=	3,800.30

Sphere Medical Holding (LSE:SPHR) 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.

Sphere Medical Holding Cash Conversion Cycle Related Terms

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Sphere Medical Holding (LSE:SPHR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sphere Medical Holding PLC (LSE:SPHR) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

Harston Mill, Harston, Cambridge, GBR, CB22 7GG

Website

http://www.spheremedical.com

Sphere Medical Holding Ltd is a UK-based company which is engaged in research and development, manufacturing and sale of medical monitoring and diagnostic equipment within the medical device area. It focuses on developing the Proxima platform for measuring blood gases, electrolytes and metabolites. Proxima is an in-line patient dedicated arterial blood analyser which supports frequent measurements at critical times. It markets its product (Proxima) to critical care market which includes ICU (Intensive Care Unit) and OR (Operating Room). The company's products are used in medical applications, enabling faster clinical decision-making and improved patient outcomes. It operates is business in single reporting segment of Medical devices. Most of the company's revenue comes from Europe.