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Puration (Puration) Cash Conversion Cycle : -2.74 (As of Sep. 2007)


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What is Puration Cash Conversion Cycle?

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

Puration's Days Sales Outstanding for the three months ended in Sep. 2007 was 0.
Puration's Days Inventory for the three months ended in Sep. 2007 was 412.45.
Puration's Days Payable for the three months ended in Sep. 2007 was 415.19.
Therefore, Puration's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2007 was -2.74.


Puration Cash Conversion Cycle Historical Data

The historical data trend for Puration'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.

* Premium members only.

Puration Cash Conversion Cycle Chart

Puration Annual Data
Trend Dec04 Dec05 Dec06
Cash Conversion Cycle
- - 576.85

Puration Quarterly Data
Sep03 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07
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 3,170.94 - 8.36 11.71 -2.74

Competitive Comparison of Puration's Cash Conversion Cycle

For the Pollution & Treatment Controls subindustry, Puration'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.


Puration's Cash Conversion Cycle Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Puration's Cash Conversion Cycle distribution charts can be found below:

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



Puration 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.

Puration's Cash Conversion Cycle for the fiscal year that ended in Dec. 2006 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0+576.85-0
=576.85

Puration's Cash Conversion Cycle for the quarter that ended in Sep. 2007 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+412.45-415.19
=-2.74

* 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.


Puration  (OTCPK:PURA) 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.


Puration Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Puration's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


Puration (Puration) Business Description

Traded in Other Exchanges
N/A
Address
1584 County Road 613, Farmersville, TX, USA, 75442
Puration Inc is engaged in the business of researching, designing, developing, producing, marketing and distributing products and systems to improve the quality of the water used daily by people around the world. The company designs and produces personal use water filter bottles and other containers and also has developed its proprietary technology for water filtration and purification. It derives its revenue from the selling of water filtration products.
Executives
Robert Howard Nelson officer: Chief Financial Officer 1613 EAST 15TH STREET, TULSA OK 74120