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Transcom WorldWide (LTS:0GO2) Cash Conversion Cycle : 35.89 (As of Sep. 2014)


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What is Transcom WorldWide Cash Conversion Cycle?

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

Transcom WorldWide's Days Sales Outstanding for the three months ended in Sep. 2014 was 54.31.
Transcom WorldWide's Days Inventory for the three months ended in Sep. 2014 was 0.
Transcom WorldWide's Days Payable for the three months ended in Sep. 2014 was 18.42.
Therefore, Transcom WorldWide's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2014 was 35.89.


Transcom WorldWide Cash Conversion Cycle Historical Data

The historical data trend for Transcom WorldWide'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.

Transcom WorldWide Cash Conversion Cycle Chart

Transcom WorldWide Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 69.98 73.44 - 35.81 34.48

Transcom WorldWide Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
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 37.52 36.04 42.36 41.39 35.89

Competitive Comparison of Transcom WorldWide's Cash Conversion Cycle

For the Specialty Business Services subindustry, Transcom WorldWide'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.


Transcom WorldWide's Cash Conversion Cycle Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Transcom WorldWide's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Transcom WorldWide's Cash Conversion Cycle falls into.



Transcom WorldWide 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.

Transcom WorldWide's Cash Conversion Cycle for the fiscal year that ended in Dec. 2013 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=51.8+0-17.32
=34.48

Transcom WorldWide's Cash Conversion Cycle for the quarter that ended in Sep. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=54.31+0-18.42
=35.89

* 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.


Transcom WorldWide  (LTS:0GO2) 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.


Transcom WorldWide Cash Conversion Cycle Related Terms

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


Transcom WorldWide Business Description

Traded in Other Exchanges
N/A
Address
Transcom WorldWide SA was established in 1995. Together with its subsidiaries provide multi-language customer relationship management products and services ('CRM') and credit management services ('CMS'), including customer help lines and other telephone-based marketing and customer service programs ('teleservices') to clients in customer-intensive industries. The Group has two primary sources of revenues being its CRM (Customer Relationship Management) and its CMS (Credit Management Services) businesses. In relation to its CRM business, revenue mainly arise from call services operations. In relation to its CMS business, revenue mainly arise from fees and commissions generated from the collection of receivables on behalf of customers. The Company's operating segments are North Europe CRM (Denmark, Netherlands, Norway, Sweden, Estonia, Latvia and Lithuania), Central & South Europe CRM (Austria, Belgium, Croatia, Germany, Hungary, Italy, luxembourg, Poland, Slovakia, Switzerland, and Tunisia), Iberia & latam CRM (Chile, Peru, Portugal and Spain), North America & Asia Pacific CRM (Canada, the Philippines, USA, the United Kingdom and Australia), and CMS (Austria, the Czech Republic, the United Kingdom, Poland, Denmark, Norway and Sweden).

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