QTCI (Quantum Capital) Cash Conversion Cycle: 19.35 (As of Sep. 2011)


What is Quantum Capital Cash Conversion Cycle?

Quantum Capital QTCI Cash Conversion Cycle is 19.35 as of Sep. 2011.

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

Quantum Capital's Days Sales Outstanding for the three months ended in Sep. 2011 was 47.38.
Quantum Capital's Days Inventory for the three months ended in Sep. 2011 was 18.36.
Quantum Capital's Days Payable for the three months ended in Sep. 2011 was 46.39.
Therefore, Quantum Capital's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2011 was 19.35.


Quantum Capital  (OTCPK:QTCI) 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.


Quantum Capital Cash Conversion Cycle Related Terms


Quantum Capital Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Quantum Capital'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.

Quantum Capital Cash Conversion Cycle Chart

Quantum Capital Annual Data
Trend Jun10
Cash Conversion Cycle
0.00

Quantum Capital Quarterly Data
Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only 0.00 0.00 -384.14 -16.00 19.35

QTCI vs RTON: Cash Conversion Cycle Comparison

For the Credit Services subindustry, Quantum Capital'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.


Quantum Capital Cash Conversion Cycle vs Credit Services Industry

For the Credit Services industry and Financial Services sector, Quantum Capital's Cash Conversion Cycle distribution charts can be found below:

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



Quantum Capital 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.

Quantum Capital's Cash Conversion Cycle for the fiscal year that ended in Jun. 2010 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=+-
=0.00

Quantum Capital's Cash Conversion Cycle for the quarter that ended in Sep. 2011 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=47.38+18.36-46.39
=19.35

* 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 19.35 mean?
Quantum Capital (QTCI) has a Cash Conversion Cycle of 19.35 as of Sep. 2011. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Quantum Capital and its competitors.
Is Quantum Capital's Cash Conversion Cycle too high?
Quantum Capital's current Cash Conversion Cycle is 19.35. The Credit Services industry median Cash Conversion Cycle is 1.48. Quantum Capital's value of 19.35 is 1211.9% above this industry median.
How does Quantum Capital's Cash Conversion Cycle compare to RTON?
Quantum Capital's Cash Conversion Cycle of 19.35 can be compared against companies in the Credit Services industry. The industry median Cash Conversion Cycle is 1.48. Quantum Capital's value of 19.35 is 1211.9% 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 Credit Services company?
The median Cash Conversion Cycle among Credit Services companies is 1.48, based on 376 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. Quantum Capital's current Cash Conversion Cycle of 19.35 is 1211.9% 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 Quantum Capital and its competitors. For the Credit Services industry, the median Cash Conversion Cycle is 1.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Quantum Capital's current Cash Conversion Cycle is 19.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Quantum Capital stock overvalued right now?
Quantum Capital (QTCI) has a current Cash Conversion Cycle of 19.35. The current Cash Conversion Cycle is 19.35 and 1211.9% above the Credit Services industry median of 1.48. 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 Quantum Capital (QTCI), the current Cash Conversion Cycle is 19.35 as of Sep. 2011. 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.

Quantum Capital Business Description

Address 3430 E. Russell Road, Springhill, Las Vegas, NV, USA, 89120
Quantum Capital Inc is an Australian company. The company owns Loan Base Pty Ltd, an Australian company with the mission of providing clients with personalized lending solutions that achieve their goals through premium, online, exclusive, convenient, and tailored lending solutions intermediary platforms.