The Alkaline Water Co's Days Sales Outstanding for the
three
months ended in Jun. 2023 was 35.38.
The Alkaline Water Co's Days Inventory for the
three
months ended in Jun. 2023 was 45.51.
The Alkaline Water Co's Days Payable for the
three
months ended in Jun. 2023 was 99.02.
Therefore, The Alkaline Water Co's Cash Conversion Cycle (CCC) for the
three
months ended in Jun. 2023 was -18.13.
The Alkaline Water Co (OTCPK:WTER) 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.
The Alkaline Water Co Cash Conversion Cycle Related Terms
The Alkaline Water Co Cash Conversion Cycle Historical Data
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The historical data trend for The Alkaline Water Co'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.
WTER vs PSCBF, ASII, REED: Cash Conversion Cycle Comparison
For the Beverages - Non-Alcoholic subindustry, The Alkaline Water Co'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.
The Alkaline Water Co Cash Conversion Cycle vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Alkaline Water Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where The Alkaline Water Co's Cash Conversion Cycle falls into.
The Alkaline Water Co 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.
The Alkaline Water Co's Cash Conversion Cycle for the fiscal year that ended in Mar. 2023 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.
The Alkaline Water Co (WTER) has a Cash Conversion Cycle of -18.13 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on The Alkaline Water Co and its competitors.
Is The Alkaline Water Co's Cash Conversion Cycle too high?
The Alkaline Water Co's current Cash Conversion Cycle is -18.13. Overall, The Alkaline Water Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does The Alkaline Water Co's Cash Conversion Cycle compare to PSCBF and ASII?
The Alkaline Water Co's Cash Conversion Cycle of -18.13 can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median Cash Conversion Cycle is 39.79. 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 Beverages - Non-Alcoholic company?
The median Cash Conversion Cycle among Beverages - Non-Alcoholic companies is 39.79, based on 116 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. 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 The Alkaline Water Co and its competitors. For the Beverages - Non-Alcoholic industry, the median Cash Conversion Cycle is 39.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Alkaline Water Co's current Cash Conversion Cycle is -18.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Alkaline Water Co stock overvalued right now?
The Alkaline Water Co (WTER) has a current Cash Conversion Cycle of -18.13. The current Cash Conversion Cycle is -18.13. The Alkaline Water Co's 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 The Alkaline Water Co (WTER), the current Cash Conversion Cycle is -18.13 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.
The Alkaline Water Co Inc is engaged in the business of distributing and marketing bottled alkaline water for retail consumers of different sizes. The firm sells its product in 500ml, 700ml, 1-liter, 1.5-liter 3-liter, and 1-gallon sizes. Its only operating geographical segment being the United States of America. The company sells its product to convenience stores, natural food products stores, large ethnic markets, and national retailers.
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