OPST (OPT Sciences) Cash Conversion Cycle: 139.71 (As of Jul. 2015)

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What is OPT Sciences Cash Conversion Cycle?

OPT Sciences OPST Cash Conversion Cycle is 139.71 as of Jul. 2015.

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

OPT Sciences's Days Sales Outstanding for the three months ended in Jul. 2015 was 62.56.
OPT Sciences's Days Inventory for the three months ended in Jul. 2015 was 85.53.
OPT Sciences's Days Payable for the three months ended in Jul. 2015 was 8.38.
Therefore, OPT Sciences's Cash Conversion Cycle (CCC) for the three months ended in Jul. 2015 was 139.71.


OPT Sciences  (OTCPK:OPST) 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.


OPT Sciences Cash Conversion Cycle Related Terms


OPT Sciences Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for OPT Sciences'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.

OPT Sciences Cash Conversion Cycle Chart

OPT Sciences Annual Data
Trend Oct05 Oct06 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 104.14 104.72 109.86 136.83 130.22

OPT Sciences Quarterly Data
Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 127.19 106.97 131.70 145.81 139.71

OPST vs SDEV, SIF, OPXS: Cash Conversion Cycle Comparison

For the Aerospace & Defense subindustry, OPT Sciences'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.


OPT Sciences Cash Conversion Cycle vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, OPT Sciences's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where OPT Sciences's Cash Conversion Cycle falls into.



OPT Sciences 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.

OPT Sciences's Cash Conversion Cycle for the fiscal year that ended in Oct. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=65.69+71.77-7.24
=130.22

OPT Sciences's Cash Conversion Cycle for the quarter that ended in Jul. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=62.56+85.53-8.38
=139.71

* 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 139.71 mean?
OPT Sciences (OPST) has a Cash Conversion Cycle of 139.71 as of Jul. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on OPT Sciences and its competitors.
Is OPT Sciences' Cash Conversion Cycle too high?
OPT Sciences' current Cash Conversion Cycle is 139.71. The Aerospace & Defense industry median Cash Conversion Cycle is 135.67. OPT Sciences' value of 139.71 is 3% above this industry median.
How does OPT Sciences' Cash Conversion Cycle compare to SDEV and SIF?
OPT Sciences' Cash Conversion Cycle of 139.71 can be compared against companies in the Aerospace & Defense industry. The industry median Cash Conversion Cycle is 135.67. OPT Sciences' value of 139.71 is 3% 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 an Aerospace & Defense company?
The median Cash Conversion Cycle among Aerospace & Defense companies is 135.67, based on 351 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. OPT Sciences's current Cash Conversion Cycle of 139.71 is 3% 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 OPT Sciences and its competitors. For the Aerospace & Defense industry, the median Cash Conversion Cycle is 135.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OPT Sciences's current Cash Conversion Cycle is 139.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OPT Sciences stock overvalued right now?
OPT Sciences (OPST) has a current Cash Conversion Cycle of 139.71. The current Cash Conversion Cycle is 139.71 and 3% above the Aerospace & Defense industry median of 135.67. 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 OPT Sciences (OPST), the current Cash Conversion Cycle is 139.71 as of Jul. 2015. 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.

OPT Sciences Business Description

Address 1912 Bannard Street, Cinnaminson, NJ, USA, 08077
OPT Sciences Corp through its operating subsidiary O & S Research, manufactures precision optical components for the Aerospace Industry. It provides anti-glare optical coatings, panels for liquid crystal displays ("LCD"), LCD glass heaters, and electromagnetic interference shielding glass. In addition, it also offers glass cutting, grinding, and painting services. Geographically, the activities are performed in the United States and it derives revenue from product sales when products are shipped to customers.