NEPG (NEP Group) Cash Conversion Cycle: -37.25 (As of Dec. 2014)


What is NEP Group Cash Conversion Cycle?

NEP Group NEPG Cash Conversion Cycle is -37.25 as of Dec. 2014.

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

NEP Group's Days Sales Outstanding for the six months ended in Dec. 2014 was 0.
NEP Group's Days Inventory for the six months ended in Dec. 2014 was 0.
NEP Group's Days Payable for the six months ended in Dec. 2014 was 37.25.
Therefore, NEP Group's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2014 was -37.25.

NEP Group  (NYSE:NEPG) 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.

NEP Group Cash Conversion Cycle Related Terms

NEP Group Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for NEP Group'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.

NEP Group Cash Conversion Cycle Chart

NEP Group Annual Data
Trend Dec13 Dec14
Cash Conversion Cycle
-39.35 -37.25

NEP Group Semi-Annual Data
Dec13 Dec14
Cash Conversion Cycle -39.35 -37.25

NEPG vs CRCO, ASKH, PTSX: Cash Conversion Cycle Comparison

For the Broadcasting subindustry, NEP Group'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.

NEP Group Cash Conversion Cycle vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, NEP Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where NEP Group's Cash Conversion Cycle falls into.


NEP Group 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.

NEP Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0+0-37.25
=-37.25

NEP Group's Cash Conversion Cycle for the quarter that ended in Dec. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+0-37.25
=-37.25

* 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 -37.25 mean?
NEP Group (NEPG) has a Cash Conversion Cycle of -37.25 as of Dec. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on NEP Group and its competitors.
Is NEP Group's Cash Conversion Cycle too high?
NEP Group's current Cash Conversion Cycle is -37.25.
How does NEP Group's Cash Conversion Cycle compare to CRCO and ASKH?
NEP Group's Cash Conversion Cycle of -37.25 can be compared against companies in the Media - Diversified industry. The industry median Cash Conversion Cycle is 20.01. 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 Media - Diversified company?
The median Cash Conversion Cycle among Media - Diversified companies is 20.01, based on 1,007 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. 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 NEP Group and its competitors. For the Media - Diversified industry, the median Cash Conversion Cycle is 20.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. NEP Group's current Cash Conversion Cycle is -37.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NEP Group stock overvalued right now?
NEP Group (NEPG) has a current Cash Conversion Cycle of -37.25. The current Cash Conversion Cycle is -37.25. 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 NEP Group (NEPG), the current Cash Conversion Cycle is -37.25 as of Dec. 2014. 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.

NEP Group Business Description

NEP Group Inc was founded on December 24, 2012. The Company is a provider of customized broadcast solutions to the live sports and entertainment markets offering various broadcast and live event services. The Company's engineers design live event solutions and work side-by-side with its clients to customize its solutions and provide real-time support during a broadcast or live event to ensure a seamlessly delivered production. The Company has developed a range of services operating inside and outside of the United States and has supported events. It serves the premium sports, entertainment and other live event production markets, where it offers mission-critical outsourced solutions, including remote production, studio production, video display and host broadcasting. It competes in three primary geographies: the United States, Europe and Australia, servicing the sports, entertainment and other live events markets. It competes against F&F Productions, Game Creek Video, Lyon Video and Mobile Television Group in the United States; Gearhouse Broadcast in Australia; CTV Outside Broadcasts and Telegenic in the U.K.; AMP Visuals, Euro Media Group, Mediapro Group and Top Vision in Continental Europe.