SPOI (SPO Networks) Cash Conversion Cycle: -31.05 (As of May. 2006)


What is SPO Networks Cash Conversion Cycle?

SPO Networks SPOI -99.67% Cash Conversion Cycle is -31.05 as of May. 2006.

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

SPO Networks's Days Sales Outstanding for the three months ended in May. 2006 was 74.65.
SPO Networks's Days Inventory for the three months ended in May. 2006 was 0.
SPO Networks's Days Payable for the three months ended in May. 2006 was 105.7.
Therefore, SPO Networks's Cash Conversion Cycle (CCC) for the three months ended in May. 2006 was -31.05.

SPO Networks  (OTCPK:SPOI) 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.

SPO Networks Cash Conversion Cycle Related Terms

SPO Networks Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for SPO Networks'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.

SPO Networks Cash Conversion Cycle Chart

SPO Networks Annual Data
Trend Dec01 Dec02 May04 May05
Cash Conversion Cycle
0.00 0.00 59.44 -30.99

SPO Networks Quarterly Data
Dec01 Mar02 Jun02 Sep02 Dec02 Mar03 Jun03 Nov03 Feb04 May04 Aug04 Nov04 Feb05 May05 Aug05 Nov05 Feb06 May06
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 25.14 -39.03 -59.99 -116.61 -31.05

SPOI vs GKIT, GPVRF, SORL: Cash Conversion Cycle Comparison

For the Shell Companies subindustry, SPO Networks'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.

SPO Networks Cash Conversion Cycle vs Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, SPO Networks's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where SPO Networks's Cash Conversion Cycle falls into.


SPO Networks 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.

SPO Networks's Cash Conversion Cycle for the fiscal year that ended in May. 2005 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=20.68+0-51.67
=-30.99

SPO Networks's Cash Conversion Cycle for the quarter that ended in May. 2006 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=74.65+0-105.7
=-31.05

* 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 -31.05 mean?
SPO Networks (SPOI) has a Cash Conversion Cycle of -31.05 as of May. 2006. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SPO Networks and its competitors.
Is SPO Networks' Cash Conversion Cycle too high?
SPO Networks' current Cash Conversion Cycle is -31.05.
How does SPO Networks' Cash Conversion Cycle compare to GKIT and GPVRF?
SPO Networks' Cash Conversion Cycle of -31.05 can be compared against companies in the Diversified Financial Services industry. The industry median Cash Conversion Cycle is 2.56. 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 Diversified Financial Services company?
The median Cash Conversion Cycle among Diversified Financial Services companies is 2.56, based on 93 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 SPO Networks and its competitors. For the Diversified Financial Services industry, the median Cash Conversion Cycle is 2.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SPO Networks's current Cash Conversion Cycle is -31.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SPO Networks stock overvalued right now?
SPO Networks (SPOI) has a current Cash Conversion Cycle of -31.05. The current Cash Conversion Cycle is -31.05. 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 SPO Networks (SPOI), the current Cash Conversion Cycle is -31.05 as of May. 2006. 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.

SPO Networks Business Description

Address P.O. Box 600, Farmington, AR, USA, 72730
SPO Networks Inc is engaged in exploring potential acquisitions and opportunities in diversified industries, including performing and non-performing bank loans, coffee retailing and roasting, solid waste and recycling, general contracting, construction, and demolition with special waste remediation.