Online Vacation Center Holdings (OTCPK:ONVC) 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.
Online Vacation Center Holdings Cash Conversion Cycle Related Terms
Online Vacation Center Holdings Cash Conversion Cycle Historical Data
* 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.
Online Vacation Center Holdings Cash Conversion Cycle Chart
ONVC vs NTRP, NNAX, CDNO: Cash Conversion Cycle Comparison
For the Travel Services subindustry, Online Vacation Center 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.
Online Vacation Center Holdings Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Online Vacation Center Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Online Vacation Center Holdings's Cash Conversion Cycle falls into.
Online Vacation Center 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.
* 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.
Online Vacation Center Holdings (ONVC) has a Cash Conversion Cycle of 82.27 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Online Vacation Center Holdings and its competitors.
Is Online Vacation Center Holdings' Cash Conversion Cycle too high?
Online Vacation Center Holdings' current Cash Conversion Cycle is 82.27. The Travel & Leisure industry median Cash Conversion Cycle is 10.23. Online Vacation Center Holdings' value of 82.27 is 704.2% above this industry median. Overall, Online Vacation Center Holdings has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Online Vacation Center Holdings' Cash Conversion Cycle compare to NTRP and NNAX?
Online Vacation Center Holdings' Cash Conversion Cycle of 82.27 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.23. Online Vacation Center Holdings' value of 82.27 is 704.2% 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 Travel & Leisure company?
The median Cash Conversion Cycle among Travel & Leisure companies is 10.23, based on 841 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. Online Vacation Center Holdings's current Cash Conversion Cycle of 82.27 is 704.2% 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 Online Vacation Center Holdings and its competitors. For the Travel & Leisure industry, the median Cash Conversion Cycle is 10.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Online Vacation Center Holdings's current Cash Conversion Cycle is 82.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Online Vacation Center Holdings stock overvalued right now?
Online Vacation Center Holdings (ONVC) has a current Cash Conversion Cycle of 82.27. The current Cash Conversion Cycle is 82.27 and 704.2% above the Travel & Leisure industry median of 10.23. Online Vacation Center Holdings' overall GF Score™ is 12/100. 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 Online Vacation Center Holdings (ONVC), the current Cash Conversion Cycle is 82.27 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.
Online Vacation Center Holdings Business Description
Online Vacation Center Holdings Corp is a Florida holding company. It is engaged in the provision of vacation travel and marketing services through its wholly-owned subsidiaries. The company offers vacation services for affluent retiree markets and river, ocean, and land vacation packages, operates a franchise that focuses on travel sales through mobile agents, and offers other services. The company also publishes three travel newsletters, such as Top Travel Deals, Spotlight, and TravelFlash; and operates a website that connects travelers with websites to purchase hotel, resort, and vacation packages.
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