PreVu (PRVU) Cash Conversion Cycle: 104.59 (As of Apr. 2008)


What is PreVu Cash Conversion Cycle?

PreVu PRVU Cash Conversion Cycle is 104.59 as of Apr. 2008.

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

PreVu's Days Sales Outstanding for the three months ended in Apr. 2008 was 7.78.
PreVu's Days Inventory for the three months ended in Apr. 2008 was 133.53.
PreVu's Days Payable for the three months ended in Apr. 2008 was 36.72.
Therefore, PreVu's Cash Conversion Cycle (CCC) for the three months ended in Apr. 2008 was 104.59.

PreVu  (OTCPK:PRVU) 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.

PreVu Cash Conversion Cycle Related Terms

PreVu Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for PreVu'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.

PreVu Cash Conversion Cycle Chart

PreVu Annual Data
Trend Jan98 Jan99 Jan00 Jan01 Jan02 Jan03 Jan04 Jan05 Jan06 Jan07
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.82 90.98 93.83 103.66 108.61

PreVu Quarterly Data
Jul03 Oct03 Jan04 Apr04 Jul04 Oct04 Jan05 Apr05 Jul05 Oct05 Jan06 Apr06 Jul06 Oct06 Jan07 Apr07 Jul07 Oct07 Jan08 Apr08
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 145.36 98.66 97.54 60.88 104.59

PRVU vs GMANQ, IVDN, FJBHF: Cash Conversion Cycle Comparison

For the Apparel Retail subindustry, PreVu'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.

PreVu Cash Conversion Cycle vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, PreVu's Cash Conversion Cycle distribution charts can be found below:

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


PreVu 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.

PreVu's Cash Conversion Cycle for the fiscal year that ended in Jan. 2007 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=4.09+125.07-20.55
=108.61

PreVu's Cash Conversion Cycle for the quarter that ended in Apr. 2008 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=7.78+133.53-36.72
=104.59

* 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 104.59 mean?
PreVu (PRVU) has a Cash Conversion Cycle of 104.59 as of Apr. 2008. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PreVu and its competitors.
Is PreVu's Cash Conversion Cycle too high?
PreVu's current Cash Conversion Cycle is 104.59. The Retail - Cyclical industry median Cash Conversion Cycle is 69.79. PreVu's value of 104.59 is 49.9% above this industry median.
How does PreVu's Cash Conversion Cycle compare to GMANQ and IVDN?
PreVu's Cash Conversion Cycle of 104.59 can be compared against companies in the Retail - Cyclical industry. The industry median Cash Conversion Cycle is 69.79. PreVu's value of 104.59 is 49.9% 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 a Retail - Cyclical company?
The median Cash Conversion Cycle among Retail - Cyclical companies is 69.79, based on 1,126 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. PreVu's current Cash Conversion Cycle of 104.59 is 49.9% 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 PreVu and its competitors. For the Retail - Cyclical industry, the median Cash Conversion Cycle is 69.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PreVu's current Cash Conversion Cycle is 104.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PreVu stock overvalued right now?
PreVu (PRVU) has a current Cash Conversion Cycle of 104.59. The current Cash Conversion Cycle is 104.59 and 49.9% above the Retail - Cyclical industry median of 69.79. 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 PreVu (PRVU), the current Cash Conversion Cycle is 104.59 as of Apr. 2008. 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.

PreVu Business Description

Address 7401 Boone Avenue North, Brooklyn Park, MN, USA, 55428
PreVu Inc is a retailer of leather outerwear, accessories and apparel in the United States. The company's products include men's and women's fashion leather jackets, handbags and other accessories.