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Sonic Foundry's Days Sales Outstanding for the
three
months ended in Sep. 2023 was 74.16.
Sonic Foundry's Days Inventory for the
three
months ended in Sep. 2023 was 85.13.
Sonic Foundry's Days Payable for the
three
months ended in Sep. 2023 was 78.35.
Therefore, Sonic Foundry's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2023 was 80.94.
Sonic Foundry (OTCPK:SOFO) 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.
Sonic Foundry Cash Conversion Cycle Related Terms
Sonic Foundry Cash Conversion Cycle Historical Data
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The historical data trend for Sonic Foundry'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.
SOFO vs EBIXQ, WOWI, DUUO: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Sonic Foundry'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.
Sonic Foundry Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Sonic Foundry's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sonic Foundry'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.
Sonic Foundry's Cash Conversion Cycle for the fiscal year that ended in Sep. 2023 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.
Sonic Foundry (SOFO) has a Cash Conversion Cycle of 80.94 as of Sep. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sonic Foundry and its competitors.
Is Sonic Foundry's Cash Conversion Cycle too high?
Sonic Foundry's current Cash Conversion Cycle is 80.94. The Software industry median Cash Conversion Cycle is 31.48. Sonic Foundry's value of 80.94 is 157.1% above this industry median. Overall, Sonic Foundry has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Sonic Foundry's Cash Conversion Cycle compare to EBIXQ and WOWI?
Sonic Foundry's Cash Conversion Cycle of 80.94 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 31.48. Sonic Foundry's value of 80.94 is 157.1% 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 Software company?
The median Cash Conversion Cycle among Software companies is 31.48, based on 2,809 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. Sonic Foundry's current Cash Conversion Cycle of 80.94 is 157.1% 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 Sonic Foundry and its competitors. For the Software industry, the median Cash Conversion Cycle is 31.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonic Foundry's current Cash Conversion Cycle is 80.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Foundry stock overvalued right now?
Sonic Foundry (SOFO) has a current Cash Conversion Cycle of 80.94. The current Cash Conversion Cycle is 80.94 and 157.1% above the Software industry median of 31.48. Sonic Foundry'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 Sonic Foundry (SOFO), the current Cash Conversion Cycle is 80.94 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.
Sonic Foundry Inc is engaged in the business of providing video enterprise solutions and services for the digital-first, distance learning, and corporate communications market. It offers video capture, management, and streaming solutions as well as virtual and hybrid events in education, business, and government. Sonic Foundry's family of brands includes Mediasite, Video Solutions, Vidable and Global Learning Exchange. The company also offers video solutions, including Mediasite Video Platform, Mediasite Video Cloud, Mediasite Capture Solutions, Mediasite Events, Mediasite Services, and Mediasite Customer Care. The company has a geographical presence in the United States, Europe, and the Middle East, Asia, and other places.
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