Sterling Consolidated's Days Sales Outstanding for the
three
months ended in Sep. 2022 was 57.
Sterling Consolidated's Days Inventory for the
three
months ended in Sep. 2022 was 92.99.
Sterling Consolidated's Days Payable for the
three
months ended in Sep. 2022 was 0.
Therefore, Sterling Consolidated's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2022 was 149.99.
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.
Sterling Consolidated Cash Conversion Cycle Related Terms
Sterling Consolidated Cash Conversion Cycle Historical Data
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The historical data trend for Sterling Consolidated'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.
STCC vs AMTY, OMTK, FLESD: Cash Conversion Cycle Comparison
For the Specialty Chemicals subindustry, Sterling Consolidated'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.
Sterling Consolidated Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sterling Consolidated's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sterling Consolidated'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.
Sterling Consolidated's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 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.
Sterling Consolidated (STCC) has a Cash Conversion Cycle of 149.99 as of Sep. 2022. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sterling Consolidated and its competitors.
Is Sterling Consolidated's Cash Conversion Cycle too high?
Sterling Consolidated's current Cash Conversion Cycle is 149.99. The Chemicals industry median Cash Conversion Cycle is 89.14. Sterling Consolidated's value of 149.99 is 68.3% above this industry median.
How does Sterling Consolidated's Cash Conversion Cycle compare to AMTY and OMTK?
Sterling Consolidated's Cash Conversion Cycle of 149.99 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.14. Sterling Consolidated's value of 149.99 is 68.3% 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 Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.14, based on 1,586 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. Sterling Consolidated's current Cash Conversion Cycle of 149.99 is 68.3% 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 Sterling Consolidated and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sterling Consolidated's current Cash Conversion Cycle is 149.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sterling Consolidated stock overvalued right now?
Sterling Consolidated (STCC) has a current Cash Conversion Cycle of 149.99. The current Cash Conversion Cycle is 149.99 and 68.3% above the Chemicals industry median of 89.14. 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 Sterling Consolidated (STCC), the current Cash Conversion Cycle is 149.99 as of Sep. 2022. 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.
Sterling Consolidated Corp is engaged in the distribution and sale of O-rings used for sealing purposes. It also distributes rubber seals, oil seals, custom molded rubber parts, custom Teflon parts, Teflon rods, O-ring cord, bonded seals, O-ring kits, and stuffing box sealantsbna. These are used in different industries such as automotive, pump, transmissions, oil and energy, machinery, and packaging. It is mainly used as seals to prevent leakage of liquids or air. The company generates its key revenues through the sale of O-rings and rubber seal products in the USA.
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