Medical Marijuana's Days Sales Outstanding for the
six
months ended in Dec. 2017 was 2.09.
Medical Marijuana's Days Inventory for the
six
months ended in Dec. 2017 was 163.45.
Medical Marijuana's Days Payable for the
six
months ended in Dec. 2017 was 29.87.
Therefore, Medical Marijuana's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2017 was 135.67.
Medical Marijuana (OTCPK:MJNA) 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.
Medical Marijuana Cash Conversion Cycle Related Terms
Medical Marijuana Cash Conversion Cycle Historical Data
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The historical data trend for Medical Marijuana'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.
MJNA vs UPC, ERBB, KAYS: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Medical Marijuana'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.
Medical Marijuana Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Medical Marijuana's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Medical Marijuana's Cash Conversion Cycle falls into.
Medical Marijuana 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.
Medical Marijuana's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 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.
Medical Marijuana (MJNA) has a Cash Conversion Cycle of 135.67 as of Dec. 2017. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Medical Marijuana and its competitors.
Is Medical Marijuana's Cash Conversion Cycle too high?
Medical Marijuana's current Cash Conversion Cycle is 135.67. The Drug Manufacturers industry median Cash Conversion Cycle is 145.87. Medical Marijuana's value of 135.67 is 7% below this industry median.
How does Medical Marijuana's Cash Conversion Cycle compare to UPC and ERBB?
Medical Marijuana's Cash Conversion Cycle of 135.67 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.87. Medical Marijuana's value of 135.67 is 7% below 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.87, based on 948 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. Medical Marijuana's current Cash Conversion Cycle of 135.67 is 7% below 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 Medical Marijuana and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Medical Marijuana's current Cash Conversion Cycle is 135.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Medical Marijuana stock overvalued right now?
Medical Marijuana (MJNA) has a current Cash Conversion Cycle of 135.67. The current Cash Conversion Cycle is 135.67 and 7% below the Drug Manufacturers industry median of 145.87. 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 Medical Marijuana (MJNA), the current Cash Conversion Cycle is 135.67 as of Dec. 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.
Medical Marijuana Inc is engaged in the development, sale, and distribution of hemp oil that contains naturally occurring cannabinoids, including cannabidiol and other products containing CBD-rich hemp oil. The company's products are used by pharmaceutical, nutraceutical, and cosmeceutical industries. Some of its products are CBD Capsules, CBD Tinctures, Vaporizers, and Hemp foods among others. The company operates through Retail and Wholesale division; Direct Sales division; and Manufacturing and Production Division.
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