Lithuanian Shipping Company PC (OVSE:LJL1L) Cash Conversion Cycle: 13.70 (As of Sep. 2015)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Lithuanian Shipping Company PC Cash Conversion Cycle?

Lithuanian Shipping Company PC OVSE:LJL1L Cash Conversion Cycle is 13.70 as of Sep. 2015. The stock has 6 warning signs investors should review.

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

Lithuanian Shipping Company PC's Days Sales Outstanding for the three months ended in Sep. 2015 was 0.
Lithuanian Shipping Company PC's Days Inventory for the three months ended in Sep. 2015 was 13.7.
Lithuanian Shipping Company PC's Days Payable for the three months ended in Sep. 2015 was 0.
Therefore, Lithuanian Shipping Company PC's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2015 was 13.70.


Lithuanian Shipping Company PC  (OVSE:LJL1L) 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.


Lithuanian Shipping Company PC Cash Conversion Cycle Related Terms


Lithuanian Shipping Company PC Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Lithuanian Shipping Company PC'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.

Lithuanian Shipping Company PC Cash Conversion Cycle Chart

Lithuanian Shipping Company PC Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Cash Conversion Cycle
Get a 7-Day Free Trial 1.67 2.53 -22.75 -32.96 17.92

Lithuanian Shipping Company PC Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
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 -35.63 -57.59 17.35 13.96 13.70

OVSE:LJL1L vs PRGNF, TEUFF, BSTN: Cash Conversion Cycle Comparison

For the Marine Shipping subindustry, Lithuanian Shipping Company PC'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.


Lithuanian Shipping Company PC Cash Conversion Cycle vs Transportation Industry

For the Transportation industry and Industrials sector, Lithuanian Shipping Company PC's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Lithuanian Shipping Company PC's Cash Conversion Cycle falls into.



Lithuanian Shipping Company PC 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.

Lithuanian Shipping Company PC'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+17.92-0
=17.92

Lithuanian Shipping Company PC's Cash Conversion Cycle for the quarter that ended in Sep. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+13.7-0
=13.70

* 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 13.70 mean?
Lithuanian Shipping Company PC (OVSE:LJL1L) has a Cash Conversion Cycle of 13.70 as of Sep. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Lithuanian Shipping Company PC and its competitors.
Is Lithuanian Shipping Company PC's Cash Conversion Cycle too high?
Lithuanian Shipping Company PC's current Cash Conversion Cycle is 13.70. The Transportation industry median Cash Conversion Cycle is 19.65. Lithuanian Shipping Company PC's value of 13.70 is 30.3% below this industry median.
How does Lithuanian Shipping Company PC's Cash Conversion Cycle compare to PRGNF and TEUFF?
Lithuanian Shipping Company PC's Cash Conversion Cycle of 13.70 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 19.65. Lithuanian Shipping Company PC's value of 13.70 is 30.3% below 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 19.65, based on 1,004 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. Lithuanian Shipping Company PC's current Cash Conversion Cycle of 13.70 is 30.3% below 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 Lithuanian Shipping Company PC and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 19.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lithuanian Shipping Company PC's current Cash Conversion Cycle is 13.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lithuanian Shipping Company PC stock overvalued right now?
Lithuanian Shipping Company PC (OVSE:LJL1L) has a current Cash Conversion Cycle of 13.70. The current Cash Conversion Cycle is 13.70 and 30.3% below the Transportation industry median of 19.65. 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 Lithuanian Shipping Company PC (OVSE:LJL1L), the current Cash Conversion Cycle is 13.70 as of Sep. 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.

Lithuanian Shipping Company PC Business Description

Lietuvos juru laivininkyste is a shipping company. It is engaged in carrying bulk, timber, general and container cargoes by sea transport and leasing ships. The Company owns a fleet of cargo vessels as well as ferries for transportation of cargoes.