GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » AVITA Medical Inc (NAS:RCEL) » Definitions » Cash Conversion Cycle

AVITA Medical (AVITA Medical) Cash Conversion Cycle : 123.82 (As of Dec. 2023)


View and export this data going back to 2012. Start your Free Trial

What is AVITA Medical Cash Conversion Cycle?

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

AVITA Medical's Days Sales Outstanding for the three months ended in Dec. 2023 was 43.52.
AVITA Medical's Days Inventory for the three months ended in Dec. 2023 was 253.35.
AVITA Medical's Days Payable for the three months ended in Dec. 2023 was 173.05.
Therefore, AVITA Medical's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2023 was 123.82.


AVITA Medical Cash Conversion Cycle Historical Data

The historical data trend for AVITA Medical'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.

* Premium members only.

AVITA Medical Cash Conversion Cycle Chart

AVITA Medical Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only -22.74 -224.47 -108.99 -33.98 62.42

AVITA Medical Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -51.07 -15.08 4.20 51.38 123.82

Competitive Comparison of AVITA Medical's Cash Conversion Cycle

For the Medical Devices subindustry, AVITA Medical'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.


AVITA Medical's Cash Conversion Cycle Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, AVITA Medical's Cash Conversion Cycle distribution charts can be found below:

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



AVITA Medical 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.

AVITA Medical's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=40.69+181.12-159.39
=62.42

AVITA Medical's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=43.52+253.35-173.05
=123.82

* 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.


AVITA Medical  (NAS:RCEL) 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.


AVITA Medical Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of AVITA Medical's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.


AVITA Medical (AVITA Medical) Business Description

Address
28159 Avenue Stanford, Suite 220, Valencia, Los Angeles, CA, USA, 91355
Avita is a single product company. Its RECELL system is an innovative burn treatment device which creates Spray-on Skin from a small skin sample within 30 minutes, thus avoiding or reducing the need for skin grafts. It's approved for the treatment of adult patients in the U.S. with paediatric clinical trials and expanded indications in soft-tissue reconstruction and vitiligo underway. It is currently in roll-out across the approximately 136 U.S. burn centers. Despite having product approval in Australia, Europe, Canada, and China, Avita is not actively marketing in those territories and focussing instead on the U.S. region. However, it is expected to launch in Japan via distribution partner Cosmotec in second-half fiscal 2022. Avita is domiciled, and has its primary listing, in the U.S.
Executives
James Corbett director 2 GOODYEAR, IRVINE CA 92618
Jeremy Curnock Cook director TARGETED GENETICS CORP, 1100 OLIVE WAY STE 100, SEATTLE WA 98101
David D O'toole officer: CFO 1640 MARENGO STREET, LOS ANGELES CA 90033
Donna Shiroma officer: General Counsel C/O AVITA MEDICAL, 28159 AVENUE STANFORD, SUITE 220, VALENCIA CA 91355
Cary Guy Vance director 800 EAST MIDDLEFIELD RD, MOUNTAIN VIEW CA 94043
Robert Mcnamara director C/O LDR HOLDING CORPORATION, 13785 RESEARCH BOULEVARD, SUITE 200, AUSTIN TX 78750
Michael S Perry director, officer: Chief Executive Officer C/O BIOTRANSPLANT INC, 196 BOSTON AVE SUITE 2800, MEDFORD MA 02155
Suzanne Crowe director C/O AVITA MEDICAL, 28159 AVENUE STANFORD, SUITE 220, VALENCIA CA 91355
Jan Stern Reed director C/O JAN STERN REED BAXTER INTERNATIONAL, ONE BAXTER PARKWAY DF2 2W, DEERFIELD IL 60015
Michael Holder officer: Chief Financial Officer 6170 RESEARCH RD., STE 103, FRISCO TX 75034
Kathy M. Mcgee officer: Chief Operating Officer C/O AVITA MEDICAL, 28159 AVENUE STANFORD, SUITE 220, VALENCIA CA 91355
Sean Ekins officer: Sr. VP of Finance C/O AVITA MEDICAL, 28159 AVENUE STANFORD, SUITE 220, VALENCIA CA 91355
David Mcintyre officer: Chief Financial Officer SUITE 4 LEVEL 46 2 PARK STREET, SIDNEY C3 2000
Damien Mcdonald director 5 MERCHANT SQUARE, NORTH WHARF ROAD, LONDON X0 W21AY
Erin Liberto officer: Chief Commercial Officer C/O AVITA MEDICAL, 28159 AVENUE STANFORD, SUITE 220, VALENCIA CA 91355