MVLA (Movella Holdings) Cash Conversion Cycle: 178.95 (As of Jun. 2023)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Movella Holdings Cash Conversion Cycle?

Movella Holdings MVLA Cash Conversion Cycle is 178.95 as of Jun. 2023.

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

Movella Holdings's Days Sales Outstanding for the six months ended in Jun. 2023 was 57.45.
Movella Holdings's Days Inventory for the six months ended in Jun. 2023 was 154.76.
Movella Holdings's Days Payable for the six months ended in Jun. 2023 was 33.26.
Therefore, Movella Holdings's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2023 was 178.95.


Movella Holdings  (OTCPK:MVLA) 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.


Movella Holdings Cash Conversion Cycle Related Terms


Movella Holdings Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Movella Holdings'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.

Movella Holdings Cash Conversion Cycle Chart

Movella Holdings Annual Data
Trend Dec20 Dec21 Dec22
Cash Conversion Cycle
80.36 0.00 0.00

Movella Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
Cash Conversion Cycle Get a 7-Day Free Trial 60.71 0.00 153.13 0.00 178.95

MVLA vs LCHD, QGSI, DUOT: Cash Conversion Cycle Comparison

For the Software - Application subindustry, Movella Holdings'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.


Movella Holdings Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Movella Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Movella Holdings's Cash Conversion Cycle falls into.



Movella Holdings 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.

Movella Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0+0-0
=0.00

Movella Holdings's Cash Conversion Cycle for the quarter that ended in Jun. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=57.45+154.76-33.26
=178.95

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 178.95 mean?
Movella Holdings (MVLA) has a Cash Conversion Cycle of 178.95 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Movella Holdings and its competitors.
Is Movella Holdings' Cash Conversion Cycle too high?
Movella Holdings' current Cash Conversion Cycle is 178.95. The Software industry median Cash Conversion Cycle is 32.00. Movella Holdings' value of 178.95 is 459.2% above this industry median.
How does Movella Holdings' Cash Conversion Cycle compare to LCHD and QGSI?
Movella Holdings' Cash Conversion Cycle of 178.95 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.00. Movella Holdings' value of 178.95 is 459.2% 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 a Software company?
The median Cash Conversion Cycle among Software companies is 32.00, based on 2,813 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. Movella Holdings's current Cash Conversion Cycle of 178.95 is 459.2% 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 Movella Holdings and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Movella Holdings's current Cash Conversion Cycle is 178.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Movella Holdings stock overvalued right now?
Movella Holdings (MVLA) has a current Cash Conversion Cycle of 178.95. The current Cash Conversion Cycle is 178.95 and 459.2% above the Software industry median of 32.00. 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 Movella Holdings (MVLA), the current Cash Conversion Cycle is 178.95 as of Jun. 2023. 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.

Movella Holdings Business Description

Address 3535 Executive Terminal Drive, Suite 110, Henderson, NV, USA, 89052
Movella Holdings Inc is a full-stack provider of sensors, software, and analytics that enable the digitization of movement. It serves the entertainment, health & sports, and automation & mobility markets.