Sears Canada's Days Sales Outstanding for the
three
months ended in Apr. 2017 was 11.72.
Sears Canada's Days Inventory for the
three
months ended in Apr. 2017 was 147.89.
Sears Canada's Days Payable for the
three
months ended in Apr. 2017 was 58.78.
Therefore, Sears Canada's Cash Conversion Cycle (CCC) for the
three
months ended in Apr. 2017 was 100.83.
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.
Sears Canada Cash Conversion Cycle Related Terms
Sears Canada Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Sears Canada'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.
For the Department Stores subindustry, Sears Canada'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.
Sears Canada Cash Conversion Cycle vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Sears Canada's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sears Canada'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.
Sears Canada's Cash Conversion Cycle for the fiscal year that ended in Jan. 2017 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.
Sears Canada (SRSCQ) has a Cash Conversion Cycle of 100.83 as of Apr. 2017. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sears Canada and its competitors.
Is Sears Canada's Cash Conversion Cycle too high?
Sears Canada's current Cash Conversion Cycle is 100.83. The Retail - Cyclical industry median Cash Conversion Cycle is 69.06. Sears Canada's value of 100.83 is 46% above this industry median.
How does Sears Canada's Cash Conversion Cycle compare to competitors?
Sears Canada's Cash Conversion Cycle of 100.83 can be compared against companies in the Retail - Cyclical industry. The industry median Cash Conversion Cycle is 69.06. Sears Canada's value of 100.83 is 46% 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 Retail - Cyclical company?
The median Cash Conversion Cycle among Retail - Cyclical companies is 69.06, based on 1,122 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. Sears Canada's current Cash Conversion Cycle of 100.83 is 46% 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 Sears Canada and its competitors. For the Retail - Cyclical industry, the median Cash Conversion Cycle is 69.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sears Canada's current Cash Conversion Cycle is 100.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sears Canada stock overvalued right now?
Sears Canada (SRSCQ) has a current Cash Conversion Cycle of 100.83. The current Cash Conversion Cycle is 100.83 and 46% above the Retail - Cyclical industry median of 69.06. 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 Sears Canada (SRSCQ), the current Cash Conversion Cycle is 100.83 as of Apr. 2017. 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.
Sears Canada Inc is in the sale of goods and services through the Company's Retail channels. It comprised of one reportable segment, Merchandising. Which includes its full-line department, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. stores, and its Direct (catalog/internet) channel. It also includes service revenue related primarily to logistics services provided through the Company. Commission revenue includes travel, home improvement services, insurance, wireless and long-distance plans. Licensee fee revenue is comprised of payments received from licensees that operate within the Company stores.
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