SOLE (Sole Elite Group) Cash Conversion Cycle: 32.76 (As of Dec. 2014)


What is Sole Elite Group Cash Conversion Cycle?

Sole Elite Group SOLE Cash Conversion Cycle is 32.76 as of Dec. 2014.

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

Sole Elite Group's Days Sales Outstanding for the six months ended in Dec. 2014 was 37.2.
Sole Elite Group's Days Inventory for the six months ended in Dec. 2014 was 13.21.
Sole Elite Group's Days Payable for the six months ended in Dec. 2014 was 17.65.
Therefore, Sole Elite Group's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2014 was 32.76.

Sole Elite Group  (NAS:SOLE) 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.

Sole Elite Group Cash Conversion Cycle Related Terms

Sole Elite Group Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Sole Elite Group'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.

Sole Elite Group Cash Conversion Cycle Chart

Sole Elite Group Annual Data
Trend Dec12 Dec13 Dec14
Cash Conversion Cycle
84.21 51.52 32.76

Sole Elite Group Semi-Annual Data
Dec12 Dec13 Dec14
Cash Conversion Cycle 84.21 51.52 32.76

SOLE vs FORD, JCLY, TLF: Cash Conversion Cycle Comparison

For the Footwear & Accessories subindustry, Sole Elite Group'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.

Sole Elite Group Cash Conversion Cycle vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sole Elite Group's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Sole Elite Group's Cash Conversion Cycle falls into.


Sole Elite Group 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.

Sole Elite Group'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
=37.2+13.21-17.65
=32.76

Sole Elite Group's Cash Conversion Cycle for the quarter that ended in Dec. 2014 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=37.2+13.21-17.65
=32.76

* 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 32.76 mean?
Sole Elite Group (SOLE) has a Cash Conversion Cycle of 32.76 as of Dec. 2014. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sole Elite Group and its competitors.
Is Sole Elite Group's Cash Conversion Cycle too high?
Sole Elite Group's current Cash Conversion Cycle is 32.76. The Manufacturing - Apparel & Accessories industry median Cash Conversion Cycle is 124.30. Sole Elite Group's value of 32.76 is 73.6% below this industry median.
How does Sole Elite Group's Cash Conversion Cycle compare to FORD and JCLY?
Sole Elite Group's Cash Conversion Cycle of 32.76 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Cash Conversion Cycle is 124.30. Sole Elite Group's value of 32.76 is 73.6% below 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 Manufacturing - Apparel & Accessories company?
The median Cash Conversion Cycle among Manufacturing - Apparel & Accessories companies is 124.30, based on 1,040 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. Sole Elite Group's current Cash Conversion Cycle of 32.76 is 73.6% below 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 Sole Elite Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Cash Conversion Cycle is 124.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sole Elite Group's current Cash Conversion Cycle is 32.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sole Elite Group stock overvalued right now?
Sole Elite Group (SOLE) has a current Cash Conversion Cycle of 32.76. The current Cash Conversion Cycle is 32.76 and 73.6% below the Manufacturing - Apparel & Accessories industry median of 124.30. 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 Sole Elite Group (SOLE), the current Cash Conversion Cycle is 32.76 as of Dec. 2014. 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.

Sole Elite Group Business Description

Sole Elite Group Ltd was formed on December 10, 2014. The Company, through its subsidiaries, is engaged in the business of designing, producing and selling shoe soles. It has four product lines: RB soles, MD soles, single color IP sole and dual color IP sole products. Its manufacturing facilities in China are located in Jinjiang, Fujian Province, which has a high concentration of footwear industry participants. Sports shoe soles are made of various materials, such as EVA, RB, PU, TPE, and TPU. The core materials of shoe soles are EVA and RB. The principal raw materials used in the production of its products are EVA, rubber, TPU, color dyes and other chemical additives. Its raw materials are sourced suppliers in the PRC located in Quanzhou, Fujian Province, which is close to its production facilities. It sells products to sportswear manufacturers that are based in China, including a number of companies in the athletic wear market, including Li-Ning, 361º, ERKE and Anta. It also sells products to OEM footwear companies for international athletic brands, such as Taiwan Ching Luh, which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour in Asia. Customers use its products as components in the athletic footwear that it sells to end consumers, athletic wear companies and shoe distributors. Its customer includes Fujian Ching Luh Shoes Co., Ltd., which is an OEM footwear company that is a supplier to Adidas, Reebok, Mizuno and Under Armour. Its direct competition comes from various shoe sole production companies in China, such as Multi Sports Holding Ltd., Victory New Materials Limited Company, Fenghua SoleTech AG, Tai Ya Shoes Co., Ltd., Mao Tai (Fujian) Soles Co., Ltd. and Xing Quan International Sports Holdings Limited. It currently hold four PRC patents. The Company is subject to all China's national and local laws and regulations, including those related to environmental protection, foreign currency, property ownership and taxation.