Cerved Group SpA's Days Sales Outstanding for the
three
months ended in Sep. 2021 was 189.26.
Cerved Group SpA's Days Inventory for the
three
months ended in Sep. 2021 was 0.
Cerved Group SpA's Days Payable for the
three
months ended in Sep. 2021 was 36.01.
Therefore, Cerved Group SpA's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2021 was 153.25.
Cerved Group SpA (MEX:CERVN) 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.
Cerved Group SpA Cash Conversion Cycle Related Terms
Cerved Group SpA Cash Conversion Cycle Historical Data
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The historical data trend for Cerved Group SpA'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.
MEX:CERVN vs VALU: Cash Conversion Cycle Comparison
For the Financial Data & Stock Exchanges subindustry, Cerved Group SpA'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.
Cerved Group SpA Cash Conversion Cycle vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Cerved Group SpA's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Cerved Group SpA's Cash Conversion Cycle falls into.
Cerved Group SpA 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.
Cerved Group SpA's Cash Conversion Cycle for the fiscal year that ended in Dec. 2020 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.
Cerved Group SpA (MEX:CERVN) has a Cash Conversion Cycle of 153.25 as of Sep. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Cerved Group SpA and its competitors.
Is Cerved Group SpA's Cash Conversion Cycle too high?
Cerved Group SpA's current Cash Conversion Cycle is 153.25. The Capital Markets industry median Cash Conversion Cycle is 2.25. Cerved Group SpA's value of 153.25 is 6711.1% above this industry median. Overall, Cerved Group SpA has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does Cerved Group SpA's Cash Conversion Cycle compare to VALU?
Cerved Group SpA's Cash Conversion Cycle of 153.25 can be compared against companies in the Capital Markets industry. The industry median Cash Conversion Cycle is 2.25. Cerved Group SpA's value of 153.25 is 6711.1% 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 a Capital Markets company?
The median Cash Conversion Cycle among Capital Markets companies is 2.25, based on 637 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. Cerved Group SpA's current Cash Conversion Cycle of 153.25 is 6711.1% 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 Cerved Group SpA and its competitors. For the Capital Markets industry, the median Cash Conversion Cycle is 2.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cerved Group SpA's current Cash Conversion Cycle is 153.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cerved Group SpA stock overvalued right now?
Cerved Group SpA (MEX:CERVN) has a current Cash Conversion Cycle of 153.25. The current Cash Conversion Cycle is 153.25 and 6711.1% above the Capital Markets industry median of 2.25. Cerved Group SpA's overall GF Score™ is 8/100 with 8 warning signs to review. 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 Cerved Group SpA (MEX:CERVN), the current Cash Conversion Cycle is 153.25 as of Sep. 2021. 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.
Cerved Group SpA is a holding company that owns the Cerved Group, an Italian credit information service provider. It operates through three segments. The Risk Management segment, which accounts for the majority of the Cerved Group's revenue, offers products and services that help businesses and financial institutions to assess the credit status of their customers, business counterparties, and potential customers. The Growth Services segment offers information and analyses that help customers to understand the target market and regions, develop businesses, and improve customer satisfaction. The credit management segment assesses and manages troubled receivables and assets. It generates the majority of its revenue from the Italian domestic market.
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