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Alabama Aircraft Industries (Alabama Aircraft Industries) Cash Conversion Cycle : 55.77 (As of Dec. 2008)


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What is Alabama Aircraft Industries Cash Conversion Cycle?

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

Alabama Aircraft Industries's Days Sales Outstanding for the three months ended in Dec. 2008 was 39.27.
Alabama Aircraft Industries's Days Inventory for the three months ended in Dec. 2008 was 33.62.
Alabama Aircraft Industries's Days Payable for the three months ended in Dec. 2008 was 17.12.
Therefore, Alabama Aircraft Industries's Cash Conversion Cycle (CCC) for the three months ended in Dec. 2008 was 55.77.


Alabama Aircraft Industries Cash Conversion Cycle Historical Data

The historical data trend for Alabama Aircraft Industries'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.

* Premium members only.

Alabama Aircraft Industries Cash Conversion Cycle Chart

Alabama Aircraft Industries Annual Data
Trend Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 95.18 97.82 83.56 81.83 70.58

Alabama Aircraft Industries Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
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 90.48 68.16 101.56 110.18 55.77

Competitive Comparison of Alabama Aircraft Industries's Cash Conversion Cycle

For the Aerospace & Defense subindustry, Alabama Aircraft Industries'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.


Alabama Aircraft Industries's Cash Conversion Cycle Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Alabama Aircraft Industries's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Alabama Aircraft Industries's Cash Conversion Cycle falls into.



Alabama Aircraft Industries 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.

Alabama Aircraft Industries's Cash Conversion Cycle for the fiscal year that ended in Dec. 2008 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=48.06+45.45-22.93
=70.58

Alabama Aircraft Industries's Cash Conversion Cycle for the quarter that ended in Dec. 2008 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=39.27+33.62-17.12
=55.77

* 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.


Alabama Aircraft Industries  (OTCPK:AAIIQ) 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.


Alabama Aircraft Industries Cash Conversion Cycle Related Terms

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Alabama Aircraft Industries (Alabama Aircraft Industries) Business Description

Traded in Other Exchanges
N/A
Address
1943 North 50th Street, Birmingham, AL, USA, 35212
Alabama Aircraft Industries Inc is an aerospace & defense company, which provides aircraft maintenance & modification services to the U.S. Government, including complete airframe inspection, maintenance, repair & custom airframe design & modification.
Executives
Hugh Steven Wilson director C/O TENNENBAUM CAPITAL PARTNERS, LLC, 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Michael E Tennenbaum director C/O TENNENBAUM CAPITAL PARTNERS, LLC, 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Robert Eugene Joyal director 352 WARDNER ROAD, WEST WINDSOR VT 05089
Tennenbaum Capital Partners Llc 10 percent owner 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Mark Holdsworth director 140 S. LAKE AVE., STE. 304, PASADENA CA 91101
Tennenbaum & Co Llc 10 percent owner 1999 AVENUE OF THE STARS, LOS ANGELES CA 90067-6100
Peter Thiel other: See Footnote (1) 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069

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