Razor Energy's Days Sales Outstanding for the
three
months ended in Sep. 2023 was 41.36.
Razor Energy's Days Inventory for the
three
months ended in Sep. 2023 was 6.12.
Razor Energy's Days Payable for the
three
months ended in Sep. 2023 was 0.
Therefore, Razor Energy's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2023 was 47.48.
Razor Energy (OTCPK:RZREF) 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.
Razor Energy Cash Conversion Cycle Related Terms
Razor Energy Cash Conversion Cycle Historical Data
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The historical data trend for Razor Energy'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.
RZREF vs COP, EOG, PXD: Cash Conversion Cycle Comparison
For the Oil & Gas E&P subindustry, Razor Energy'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.
Razor Energy Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Razor Energy's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Razor Energy's Cash Conversion Cycle falls into.
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.
Razor Energy's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 is calculated as
* 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.
Razor Energy (RZREF) has a Cash Conversion Cycle of 47.48 as of Sep. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Razor Energy and its competitors.
Is Razor Energy's Cash Conversion Cycle too high?
Razor Energy's current Cash Conversion Cycle is 47.48. The Oil & Gas industry median Cash Conversion Cycle is 18.22. Razor Energy's value of 47.48 is 160.6% above this industry median. Overall, Razor Energy has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Razor Energy's Cash Conversion Cycle compare to COP and EOG?
Razor Energy's Cash Conversion Cycle of 47.48 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.22. Razor Energy's value of 47.48 is 160.6% 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 an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.22, based on 915 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. Razor Energy's current Cash Conversion Cycle of 47.48 is 160.6% 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 Razor Energy and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Razor Energy's current Cash Conversion Cycle is 47.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Razor Energy stock overvalued right now?
Razor Energy (RZREF) has a current Cash Conversion Cycle of 47.48. The current Cash Conversion Cycle is 47.48 and 160.6% above the Oil & Gas industry median of 18.22. Razor Energy's overall GF Score™ is 12/100. 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 Razor Energy (RZREF), the current Cash Conversion Cycle is 47.48 as of Sep. 2023. 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.
Razor Energy Corp is a junior oil and gas development and production company. The company is focused on the acquisition and production of oil and gas properties in Alberta. It is involved in the production and development of light oil in Swan Hills Beaverhill Lake and Kaybob Triassic Montney formations.
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