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VDRM (ViaDerma) Cash Conversion Cycle : 186.54 (As of Jun. 2012)


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What is ViaDerma Cash Conversion Cycle?

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

ViaDerma's Days Sales Outstanding for the three months ended in Jun. 2012 was 215.19.
ViaDerma's Days Inventory for the three months ended in Jun. 2012 was 11.14.
ViaDerma's Days Payable for the three months ended in Jun. 2012 was 39.79.
Therefore, ViaDerma's Cash Conversion Cycle (CCC) for the three months ended in Jun. 2012 was 186.54.


ViaDerma Cash Conversion Cycle Historical Data

The historical data trend for ViaDerma'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.

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ViaDerma Cash Conversion Cycle Chart

ViaDerma Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11
Cash Conversion Cycle
- 145.27 164.03 177.47 261.76

ViaDerma Quarterly Data
Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12
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 199.66 294.34 347.94 299.86 186.54

Competitive Comparison of ViaDerma's Cash Conversion Cycle

For the Drug Manufacturers - Specialty & Generic subindustry, ViaDerma'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.


ViaDerma's Cash Conversion Cycle Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, ViaDerma's Cash Conversion Cycle distribution charts can be found below:

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



ViaDerma 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.

ViaDerma's Cash Conversion Cycle for the fiscal year that ended in Dec. 2011 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=259.63+10.36-8.23
=261.76

ViaDerma's Cash Conversion Cycle for the quarter that ended in Jun. 2012 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=215.19+11.14-39.79
=186.54

* 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.


ViaDerma  (OTCPK:VDRM) 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.


ViaDerma Cash Conversion Cycle Related Terms

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ViaDerma Business Description

Traded in Other Exchanges
N/A
Address
4640 Admiralty Way, Suite 500, Marina Del Rey, CA, USA, 90292
ViaDerma Inc is a specialty pharmaceutical company focused to bring new products to market through research and development. It is engaged in the business of manufacturing and sales of pharmaceuticals, and specifically topical antibiotics and pain management in the United States of America. Its sells under the brand name Vitastem. The Company also has products in development in the fields; anti-aging skin care, pain management, hair-loss, and toenail fungus.