Sofwave Medical (XTAE:SOFW) Cash Conversion Cycle : 17.31 (As of Dec. 2023)

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What is Sofwave Medical Cash Conversion Cycle?

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

Sofwave Medical's Days Sales Outstanding for the six months ended in Dec. 2023 was 45.95.
Sofwave Medical's Days Inventory for the six months ended in Dec. 2023 was 125.85.
Sofwave Medical's Days Payable for the six months ended in Dec. 2023 was 154.49.
Therefore, Sofwave Medical's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2023 was 17.31.

Sofwave Medical Cash Conversion Cycle Historical Data

The historical data trend for Sofwave Medical'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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Sofwave Medical Cash Conversion Cycle Chart

Sofwave Medical Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Cash Conversion Cycle

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-103.69

-47.89

-93.33

-11.83

32.61

Sofwave Medical Semi-Annual Data
	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Cash Conversion Cycle	Get a 7-Day Free Trial				-105.55	-70.66	18.91	37.47	17.31

Competitive Comparison of Sofwave Medical's Cash Conversion Cycle

For the Medical Devices subindustry, Sofwave Medical'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.

Sofwave Medical's Cash Conversion Cycle Distribution in the Medical Devices & Instruments Industry

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

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

Sofwave Medical 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.

Sofwave Medical's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	44.71	+	127.44	-	139.54
	=	32.61

Sofwave Medical's Cash Conversion Cycle for the quarter that ended in Dec. 2023 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	45.95	+	125.85	-	154.49
	=	17.31

Sofwave Medical (XTAE:SOFW) 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.

Sofwave Medical Cash Conversion Cycle Related Terms

Thank you for viewing the detailed overview of Sofwave Medical's Cash Conversion Cycle provided by GuruFocus.com. Please click on the following links to see related term pages.

Sofwave Medical (XTAE:SOFW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sofwave Medical Ltd (XTAE:SOFW) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

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Address

Oak Medtech, Tavor, Alon Medtech Venture, Yokneam Illit, ISR, 2069200

Website

https://sofwave.com

Sofwave Medical Ltd is engaged in the development, marketing, and production of non-invasive technology for skin rejuvenation and firming treatment.

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