SCCI (Shimmick Construction Company) Cash Conversion Cycle: -29.80 (As of Jun. 2015)


What is Shimmick Construction Company Cash Conversion Cycle?

Shimmick Construction Company SCCI Cash Conversion Cycle is -29.80 as of Jun. 2015.

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

Shimmick Construction Company's Days Sales Outstanding for the six months ended in Jun. 2015 was 0.
Shimmick Construction Company's Days Inventory for the six months ended in Jun. 2015 was 2.75.
Shimmick Construction Company's Days Payable for the six months ended in Jun. 2015 was 32.55.
Therefore, Shimmick Construction Company's Cash Conversion Cycle (CCC) for the six months ended in Jun. 2015 was -29.80.

Shimmick Construction Company  (NAS:SCCI) 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.

Shimmick Construction Company Cash Conversion Cycle Related Terms

Shimmick Construction Company Cash Conversion Cycle Historical Data

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The historical data trend for Shimmick Construction Company'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.

Shimmick Construction Company Cash Conversion Cycle Chart

Shimmick Construction Company Annual Data
Trend Dec13 Dec14
Cash Conversion Cycle
-38.14 -40.14

Shimmick Construction Company Semi-Annual Data
Dec13 Jun14 Dec14 Jun15
Cash Conversion Cycle 0.00 -46.57 -36.03 -29.80

SCCI vs TSSI, SWMM, SFHI: Cash Conversion Cycle Comparison

For the Engineering & Construction subindustry, Shimmick Construction Company'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.

Shimmick Construction Company Cash Conversion Cycle vs Construction Industry

For the Construction industry and Industrials sector, Shimmick Construction Company's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Shimmick Construction Company's Cash Conversion Cycle falls into.


Shimmick Construction Company 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.

Shimmick Construction Company's Cash Conversion Cycle for the fiscal year that ended in Dec. 2014 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=0+4.32-44.46
=-40.14

Shimmick Construction Company's Cash Conversion Cycle for the quarter that ended in Jun. 2015 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=0+2.75-32.55
=-29.80

* 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 -29.80 mean?
Shimmick Construction Company (SCCI) has a Cash Conversion Cycle of -29.80 as of Jun. 2015. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Shimmick Construction Company and its competitors.
Is Shimmick Construction Company's Cash Conversion Cycle too high?
Shimmick Construction Company's current Cash Conversion Cycle is -29.80.
How does Shimmick Construction Company's Cash Conversion Cycle compare to TSSI and SWMM?
Shimmick Construction Company's Cash Conversion Cycle of -29.80 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.81. 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.81, based on 1,763 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 Shimmick Construction Company and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shimmick Construction Company's current Cash Conversion Cycle is -29.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimmick Construction Company stock overvalued right now?
Shimmick Construction Company (SCCI) has a current Cash Conversion Cycle of -29.80. The current Cash Conversion Cycle is -29.80. 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 Shimmick Construction Company (SCCI), the current Cash Conversion Cycle is -29.80 as of Jun. 2015. 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.

Shimmick Construction Company Business Description

Shimmick Construction Company Inc is a heavy civil construction company founded in 1990. The Company is engaged in construction activities in the western United States, with operations in California. The Company offers general construction, construction management, and design-build services to federal, state, and local public agencies and private customers in California and the Western United States. The Company operates in two segments including construction Projects and Construction Materials. The Construction Projects segment performs construction projects including new construction and improvement of streets, roads, highways, bridges, site work, underground, power-related facilities, utilities and other infrastructure projects. The Construction Materials segment mines and processes aggregates and operates plants that produce construction materials for internal use and for sale to third parties. The Company's customers include Caltrans, City of San Francisco, Port of Long Beach, Port of Los Angeles, City of Los Angeles, LA MTA, BART, VTA, and the Metropolitan Water District of Southern California (MWD). The Company faces competition from competitors including Balfour Beatty plc, Barnard Construction Company, Inc., Dragados S.A., Flatiron Construction Corp., Fluor Corporation, Granite Construction Incorporated, Kiewit Corporation, Obayashi Corporation, Skanska AB, Traylor Bros., Inc., Tutor Perini Corporation, and Walsh Construction Co. The Company's business is subject to various federal, state and local laws and regulations relating to the environment, including those relating to discharges to air, water and land, the handling and disposal of solid and hazardous waste, the handling of underground storage tanks and the cleanup of properties affected by hazardous substances.