SVSO (SheerVision) Cash Conversion Cycle: 19.62 (As of May. 2010)


What is SheerVision Cash Conversion Cycle?

SheerVision SVSO Cash Conversion Cycle is 19.62 as of May. 2010.

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

SheerVision's Days Sales Outstanding for the three months ended in May. 2010 was 14.78.
SheerVision's Days Inventory for the three months ended in May. 2010 was 118.54.
SheerVision's Days Payable for the three months ended in May. 2010 was 113.7.
Therefore, SheerVision's Cash Conversion Cycle (CCC) for the three months ended in May. 2010 was 19.62.


SheerVision  (OTCPK:SVSO) 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.


SheerVision Cash Conversion Cycle Related Terms


SheerVision Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for SheerVision'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.

SheerVision Cash Conversion Cycle Chart

SheerVision Annual Data
Trend Jun00 Jun01 Jun02 Jun03 Jun04 Jun05 Aug06 Aug07 Aug08 Aug09
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 32.54 14.98 0.50 0.52

SheerVision Quarterly Data
Jun05 Sep05 Dec05 Mar06 Aug06 Nov06 Feb07 May07 Aug07 Nov07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10
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 Premium Member Only Premium Member Only 30.96 22.94 41.15 27.49 19.62

SVSO vs LENSF, WHSI, ASNB: Cash Conversion Cycle Comparison

For the Medical Instruments & Supplies subindustry, SheerVision'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.


SheerVision Cash Conversion Cycle vs Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, SheerVision's Cash Conversion Cycle distribution charts can be found below:

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



SheerVision 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.

SheerVision's Cash Conversion Cycle for the fiscal year that ended in Aug. 2009 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=34.32+81.94-115.74
=0.52

SheerVision's Cash Conversion Cycle for the quarter that ended in May. 2010 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=14.78+118.54-113.7
=19.62

* 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 19.62 mean?
SheerVision (SVSO) has a Cash Conversion Cycle of 19.62 as of May. 2010. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SheerVision and its competitors.
Is SheerVision's Cash Conversion Cycle too high?
SheerVision's current Cash Conversion Cycle is 19.62. The Medical Devices & Instruments industry median Cash Conversion Cycle is 156.96. SheerVision's value of 19.62 is 87.5% below this industry median.
How does SheerVision's Cash Conversion Cycle compare to LENSF and WHSI?
SheerVision's Cash Conversion Cycle of 19.62 can be compared against companies in the Medical Devices & Instruments industry. The industry median Cash Conversion Cycle is 156.96. SheerVision's value of 19.62 is 87.5% 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 Medical Devices & Instruments company?
The median Cash Conversion Cycle among Medical Devices & Instruments companies is 156.96, based on 818 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. SheerVision's current Cash Conversion Cycle of 19.62 is 87.5% 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 SheerVision and its competitors. For the Medical Devices & Instruments industry, the median Cash Conversion Cycle is 156.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SheerVision's current Cash Conversion Cycle is 19.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SheerVision stock overvalued right now?
SheerVision (SVSO) has a current Cash Conversion Cycle of 19.62. The current Cash Conversion Cycle is 19.62 and 87.5% below the Medical Devices & Instruments industry median of 156.96. 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 SheerVision (SVSO), the current Cash Conversion Cycle is 19.62 as of May. 2010. 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.

SheerVision Business Description

Address 4030 Palos Verdes Drive N., Suite 104, Rolling Hills, CA, USA, 90274
SheerVision Inc designs, manufactures, markets, and sells proprietary surgical loupes and headlight systems to the dental, medical, and veterinary markets throughout the world. The company sells its products through distributors and e-commerce Website.