Turbo Power Systems's Days Sales Outstanding for the
three
months ended in Jun. 2017 was 0.
Turbo Power Systems's Days Inventory for the
three
months ended in Jun. 2017 was 200.72.
Turbo Power Systems's Days Payable for the
three
months ended in Jun. 2017 was 0.
Therefore, Turbo Power Systems's Cash Conversion Cycle (CCC) for the
three
months ended in Jun. 2017 was 200.72.
Turbo Power Systems (LSE:TPS) 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.
Turbo Power Systems Cash Conversion Cycle Related Terms
Turbo Power Systems Cash Conversion Cycle Historical Data
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The historical data trend for Turbo Power Systems'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.
Turbo Power Systems Cash Conversion Cycle Competitor Comparison
For the Specialty Industrial Machinery subindustry, Turbo Power Systems'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.
Turbo Power Systems Cash Conversion Cycle vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Turbo Power Systems's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Turbo Power Systems's Cash Conversion Cycle falls into.
Turbo Power Systems 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.
Turbo Power Systems's Cash Conversion Cycle for the fiscal year that ended in Dec. 2016 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.
Turbo Power Systems (LSE:TPS) has a Cash Conversion Cycle of 200.72 as of Jun. 2017. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Turbo Power Systems and its competitors.
Is Turbo Power Systems' Cash Conversion Cycle too high?
Turbo Power Systems' current Cash Conversion Cycle is 200.72. The Industrial Products industry median Cash Conversion Cycle is 122.24. Turbo Power Systems' value of 200.72 is 64.2% above this industry median.
How does Turbo Power Systems' Cash Conversion Cycle compare to competitors?
Turbo Power Systems' Cash Conversion Cycle of 200.72 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.24. Turbo Power Systems' value of 200.72 is 64.2% above 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 Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.24, based on 3,031 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. Turbo Power Systems's current Cash Conversion Cycle of 200.72 is 64.2% above 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 Turbo Power Systems and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Turbo Power Systems's current Cash Conversion Cycle is 200.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Turbo Power Systems stock overvalued right now?
Turbo Power Systems (LSE:TPS) has a current Cash Conversion Cycle of 200.72. The current Cash Conversion Cycle is 200.72 and 64.2% above the Industrial Products industry median of 122.24. 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 Turbo Power Systems (LSE:TPS), the current Cash Conversion Cycle is 200.72 as of Jun. 2017. 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.
Turbo Power Systems Inc was incorporated on March 23, 1987. The Company designs and manufactures high-speed electric motors, generators and power electronics systems and provides bespoke solutions to transport, industrial, energy conversion, and military markets The Company conducts operations through its wholly owned subsidiary company, Turbo Power Systems Limited.
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