ERWE Immobilien AG's Days Sales Outstanding for the
six
months ended in Jun. 2023 was 404.61.
ERWE Immobilien AG's Days Inventory for the
six
months ended in Jun. 2023 was 0.
ERWE Immobilien AG's Days Payable for the
six
months ended in Jun. 2023 was 0.
Therefore, ERWE Immobilien AG's Cash Conversion Cycle (CCC) for the
six
months ended in Jun. 2023 was 404.61.
ERWE Immobilien AG (STU:ERWE) 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.
ERWE Immobilien AG Cash Conversion Cycle Related Terms
ERWE Immobilien AG Cash Conversion Cycle Historical Data
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The historical data trend for ERWE Immobilien AG'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.
ERWE Immobilien AG Cash Conversion Cycle Competitor Comparison
For the Real Estate - Development subindustry, ERWE Immobilien AG'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.
ERWE Immobilien AG Cash Conversion Cycle vs Real Estate Industry
For the Real Estate industry and Real Estate sector, ERWE Immobilien AG's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where ERWE Immobilien AG's Cash Conversion Cycle falls into.
ERWE Immobilien AG 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.
ERWE Immobilien AG's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 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.
ERWE Immobilien AG (STU:ERWE) has a Cash Conversion Cycle of 404.61 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on ERWE Immobilien AG and its competitors.
Is ERWE Immobilien AG's Cash Conversion Cycle too high?
ERWE Immobilien AG's current Cash Conversion Cycle is 404.61. The Real Estate industry median Cash Conversion Cycle is 321.71. ERWE Immobilien AG's value of 404.61 is 25.8% above this industry median. Overall, ERWE Immobilien AG has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does ERWE Immobilien AG's Cash Conversion Cycle compare to competitors?
ERWE Immobilien AG's Cash Conversion Cycle of 404.61 can be compared against companies in the Real Estate industry. The industry median Cash Conversion Cycle is 321.71. ERWE Immobilien AG's value of 404.61 is 25.8% 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 Real Estate company?
The median Cash Conversion Cycle among Real Estate companies is 321.71, based on 1,735 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. ERWE Immobilien AG's current Cash Conversion Cycle of 404.61 is 25.8% 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 ERWE Immobilien AG and its competitors. For the Real Estate industry, the median Cash Conversion Cycle is 321.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ERWE Immobilien AG's current Cash Conversion Cycle is 404.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ERWE Immobilien AG stock overvalued right now?
ERWE Immobilien AG (STU:ERWE) has a current Cash Conversion Cycle of 404.61. The current Cash Conversion Cycle is 404.61 and 25.8% above the Real Estate industry median of 321.71. ERWE Immobilien AG's overall GF Score™ is 10/100. 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 ERWE Immobilien AG (STU:ERWE), the current Cash Conversion Cycle is 404.61 as of Jun. 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.
ERWE Immobilien AG focuses on the development of inner-city commercial real estate in a location of small and medium-sized cities with more than 10,000 inhabitants. This includes both office and hotel use, as well as inner-city retail. The company's projects include Postgalerie Speyer, LICHTHOF Lubeck, Krefeld department store, and Others.
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