OTG (Otg Exp) Cash Conversion Cycle: -17.93 (As of Dec. 2014)

What is Otg Exp Cash Conversion Cycle?

Otg Exp OTG Cash Conversion Cycle is -17.93 as of Dec. 2014.

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

Otg Exp's Days Sales Outstanding for the six months ended in Dec. 2014 was 0.81.
Otg Exp's Days Inventory for the six months ended in Dec. 2014 was 8.15.
Otg Exp's Days Payable for the six months ended in Dec. 2014 was 26.89.
Therefore, Otg Exp's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2014 was -17.93.

Otg Exp (NAS:OTG) 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.

Otg Exp Cash Conversion Cycle Related Terms

Otg Exp Cash Conversion Cycle Historical Data

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The historical data trend for Otg Exp'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.

Otg Exp Cash Conversion Cycle Chart

Otg Exp Annual Data

Trend

Dec13

Dec14

Cash Conversion Cycle

-31.93

-17.93

Otg Exp Semi-Annual Data
	Dec13	Dec14
Cash Conversion Cycle	-31.93	-17.93

OTG vs IRGTQ, CDIF, STRZ: Cash Conversion Cycle Comparison

For the Restaurants subindustry, Otg Exp'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.

Otg Exp Cash Conversion Cycle vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Cash Conversion Cycle distribution charts can be found below:

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

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Otg Exp 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.

Otg Exp'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
	=	0.81	+	8.15	-	26.89
	=	-17.93

Otg Exp'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
	=	0.81	+	8.15	-	26.89
	=	-17.93

Frequently Asked Questions Learn more about Cash Conversion Cycle →

What does a Cash Conversion Cycle of -17.93 mean?

Otg Exp (OTG) has a Cash Conversion Cycle of -17.93 as of Dec. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Otg Exp and its competitors.

Is Otg Exp's Cash Conversion Cycle too high?

Otg Exp's current Cash Conversion Cycle is -17.93.

How does Otg Exp's Cash Conversion Cycle compare to IRGTQ and CDIF?

Otg Exp's Cash Conversion Cycle of -17.93 can be compared against companies in the Restaurants industry. 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 Restaurants company?

A good Cash Conversion Cycle depends on the Restaurants industry context. 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 Otg Exp and its competitors. Otg Exp's current Cash Conversion Cycle is -17.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Otg Exp stock overvalued right now?

Otg Exp (OTG) has a current Cash Conversion Cycle of -17.93. The current Cash Conversion Cycle is -17.93. 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 Otg Exp (OTG), the current Cash Conversion Cycle is -17.93 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.

Otg Exp Business Description

Industry Consumer Cyclical Restaurants

Comparable Companies IRGTQ CDIF STRZ ARCK HOTR NROM HIPC GIGL SCUPF RAVE DAVE KONA GTIM STKS BDL SAUC BBRG FRSH LUB SPYR

Website http://www.anotgexperience.com

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.