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Life Technologies (FRA:IVN) Cash Conversion Cycle : 122.70 (As of Sep. 2013)


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What is Life Technologies Cash Conversion Cycle?

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

Life Technologies's Days Sales Outstanding for the three months ended in Sep. 2013 was 65.3.
Life Technologies's Days Inventory for the three months ended in Sep. 2013 was 99.8.
Life Technologies's Days Payable for the three months ended in Sep. 2013 was 42.4.
Therefore, Life Technologies's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2013 was 122.70.


Life Technologies Cash Conversion Cycle Historical Data

The historical data trend for Life Technologies'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.

Life Technologies Cash Conversion Cycle Chart

Life Technologies Annual Data
Trend Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 162.22 111.47 88.46 97.12 109.63

Life Technologies Quarterly Data
Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13
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 115.66 109.78 116.49 122.23 122.70

Competitive Comparison of Life Technologies's Cash Conversion Cycle

For the Diagnostics & Research subindustry, Life 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.


Life Technologies's Cash Conversion Cycle Distribution in the Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Life Technologies's Cash Conversion Cycle distribution charts can be found below:

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



Life Technologies 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.

Life Technologies's Cash Conversion Cycle for the fiscal year that ended in Dec. 2012 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=64.02+85.58-39.97
=109.63

Life Technologies's Cash Conversion Cycle for the quarter that ended in Sep. 2013 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=65.3+99.8-42.4
=122.70

* 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.


Life Technologies  (FRA:IVN) 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.


Life Technologies Cash Conversion Cycle Related Terms

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Life Technologies (FRA:IVN) Business Description

Traded in Other Exchanges
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Life Technologies Corp began operations as a California partnership in 1987 and incorporated in California in 1989. In 1997, the Company reincorporated as a Delaware corporation. On November 21, 2008, Invitrogen Corporation, a predecessor company to Life Technologies, completed the acquisition of Applied Biosystems, Inc. to form a new company called Life Technologies Corporation. The Company is a global life sciences company dedicated to improving the human condition. The Company's systems, consumables and services enable researchers and commercial markets to accelerate scientific exploration, to discoveries and developments that better the quality of life. The Company's products are also used in forensics, food and water testing and other industrial applications. The Company delivers a range of products and services, including systems, instruments, reagents, software, and custom services. Its growing portfolio of products includes innovative technologies for capillary electrophoresis-based sequencing, next generation sequencing, PCR, sample preparation, cell culture, RNA interference analysis, functional genomics research, proteomics and cell biology applications, as well as clinical diagnostic applications, forensics and animal, food, pharmaceutical and water testing analysis. The Company also provides its customers convenient and value-added purchasing options through thousands of sales and service professionals, e-commerce capabilities and onsite supply center solutions. The Company operates is business under three divisions: Molecular Biology Systems ('MBS'), Cell Systems ('CS'), and Genetic Systems ('GS'). The MBS division includes the molecular biology-based technologies, including basic and real-time PCR, RNAi, DNA synthesis, sample prep, transfection, cloning and protein expression profiling, protein analysis and thermo-cycler instrumentation. The CS division includes all product lines used in the study of cell function, including cell culture media and sera, stem cells and related tools, cellular imaging products, antibodies, drug discovery services and cell therapy related products. The GS division includes capillary electrophoresis systems and reagents and next generation sequencing systems and reagents, including the SOLiDTM and Ion TorrentTM systems, as well as reagent kits developed specifically for applied markets, such as forensics and food safety, animal health and pharmaceutical quality monitoring. The Company offers many different products and services and is continually developing and/or acquiring others. Some of its specific product categories include the following: 'High-throughput' gene cloning and expression technology; Pre-cast electrophoresis products; Antibodies; Magnetic beads; Molecular Probes fluorescence-based technologies; Transfection reagents; PCR and Real Time PCR systems and reagents; and RNA Interference reagents. The Company's manufacturing operations require a variety of raw materials, elec

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