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.
Virtual Interactive Technologies Cash Conversion Cycle Related Terms
Virtual Interactive Technologies Cash Conversion Cycle Historical Data
* 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.
VRVR vs FMHS, GROM, NTES: Cash Conversion Cycle Comparison
For the Electronic Gaming & Multimedia subindustry, Virtual Interactive Technologies'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.
Virtual Interactive Technologies Cash Conversion Cycle vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Virtual Interactive Technologies's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Virtual Interactive Technologies'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.
* 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.
Virtual Interactive Technologies (VRVR) has a Cash Conversion Cycle of 771.06 as of Jun. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Virtual Interactive Technologies and its competitors.
Is Virtual Interactive Technologies' Cash Conversion Cycle too high?
Virtual Interactive Technologies' current Cash Conversion Cycle is 771.06. The Interactive Media industry median Cash Conversion Cycle is 18.31. Virtual Interactive Technologies' value of 771.06 is 4111.1% above this industry median. Overall, Virtual Interactive Technologies has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Virtual Interactive Technologies' Cash Conversion Cycle compare to FMHS and GROM?
Virtual Interactive Technologies' Cash Conversion Cycle of 771.06 can be compared against companies in the Interactive Media industry. The industry median Cash Conversion Cycle is 18.31. Virtual Interactive Technologies' value of 771.06 is 4111.1% 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 an Interactive Media company?
The median Cash Conversion Cycle among Interactive Media companies is 18.31, based on 548 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. Virtual Interactive Technologies's current Cash Conversion Cycle of 771.06 is 4111.1% 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 Virtual Interactive Technologies and its competitors. For the Interactive Media industry, the median Cash Conversion Cycle is 18.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virtual Interactive Technologies's current Cash Conversion Cycle is 771.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virtual Interactive Technologies stock overvalued right now?
Virtual Interactive Technologies (VRVR) has a current Cash Conversion Cycle of 771.06. The current Cash Conversion Cycle is 771.06 and 4111.1% above the Interactive Media industry median of 18.31. Virtual Interactive Technologies' overall GF Score™ is 12/100. 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 Virtual Interactive Technologies (VRVR), the current Cash Conversion Cycle is 771.06 as of Jun. 2024. 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.
Virtual Interactive Technologies Business Description
Virtual Interactive Technologies Corp is a next-generation game and metaverse developer that creates immersion experiences by harnessing the latest technologies, including Blockchain and digital assets. The Company's newly launched brand, Extrosive, is building a metaverse that replaces traditional boring financial experiences with a new paradigm, global Prosperity space (gPs). This new asset class dynamically augments global and local realities and builds communities of aligned financial values, virtuous economies, and a trusted network. The Company also entered into a joint development partnership with Duane Lee Dog Chapman, of the Dog The Bounty Hunter fame, to develop and promote multiple games across several platforms.
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