PRST (Presto Automation) Cash Conversion Cycle: -45.62 (As of Mar. 2024)


What is Presto Automation Cash Conversion Cycle?

Presto Automation PRST -99.00% Cash Conversion Cycle is -45.62 as of Mar. 2024.

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

Presto Automation's Days Sales Outstanding for the three months ended in Mar. 2024 was 31.12.
Presto Automation's Days Inventory for the three months ended in Mar. 2024 was 5.25.
Presto Automation's Days Payable for the three months ended in Mar. 2024 was 81.99.
Therefore, Presto Automation's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was -45.62.

Presto Automation  (OTCPK:PRST) 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.

Presto Automation Cash Conversion Cycle Related Terms

Presto Automation Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Presto Automation'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.

Presto Automation Cash Conversion Cycle Chart

Presto Automation Annual Data
Trend Jun20 Jun21 Jun22 Jun23
Cash Conversion Cycle
-19.08 -12.50 -31.44 -31.57

Presto Automation Quarterly Data
Jun20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -5.81 -10.10 -5.62 -2.94 -45.62

PRST vs BOMO, CRM, INTU: Cash Conversion Cycle Comparison

For the Software - Application subindustry, Presto Automation'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.

Presto Automation Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Presto Automation's Cash Conversion Cycle distribution charts can be found below:

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


Presto Automation 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.

Presto Automation's Cash Conversion Cycle for the fiscal year that ended in Jun. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=23.39+10.67-65.63
=-31.57

Presto Automation's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=31.12+5.25-81.99
=-45.62

* 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 -45.62 mean?
Presto Automation (PRST) has a Cash Conversion Cycle of -45.62 as of Mar. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Presto Automation and its competitors.
Is Presto Automation's Cash Conversion Cycle too high?
Presto Automation's current Cash Conversion Cycle is -45.62.
How does Presto Automation's Cash Conversion Cycle compare to BOMO and CRM?
Presto Automation's Cash Conversion Cycle of -45.62 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.56. 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.56, based on 2,805 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. 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 Presto Automation and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Presto Automation's current Cash Conversion Cycle is -45.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Presto Automation stock overvalued right now?
Presto Automation (PRST) has a current Cash Conversion Cycle of -45.62. The current Cash Conversion Cycle is -45.62. 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 Presto Automation (PRST), the current Cash Conversion Cycle is -45.62 as of Mar. 2024. 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.

Presto Automation Business Description

Address 985 Industrial Road, San Carlos, CA, USA, 94070
Presto Automation Inc overlays next-gen digital solutions onto the physical world. It provides an accurate, next-gen solution that uses artificial intelligence to automate speech recognition for restaurant drive-thru. The Company earns substantially all of its revenue in the United States.