Archaea Energy (Archaea Energy) Cash Conversion Cycle : 12.54 (As of Sep. 2022)

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What is Archaea Energy Cash Conversion Cycle?

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

Archaea Energy's Days Sales Outstanding for the three months ended in Sep. 2022 was 34.39.
Archaea Energy's Days Inventory for the three months ended in Sep. 2022 was 16.5.
Archaea Energy's Days Payable for the three months ended in Sep. 2022 was 38.35.
Therefore, Archaea Energy's Cash Conversion Cycle (CCC) for the three months ended in Sep. 2022 was 12.54.

Archaea Energy Cash Conversion Cycle Historical Data

The historical data trend for Archaea Energy'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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Archaea Energy Cash Conversion Cycle Chart

Archaea Energy Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Cash Conversion Cycle

-455.44

73.85

Archaea Energy Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
Cash Conversion Cycle	Get a 7-Day Free Trial							134.90	59.62	47.10	12.22	12.54

Competitive Comparison of Archaea Energy's Cash Conversion Cycle

For the Utilities - Renewable subindustry, Archaea Energy'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.

Archaea Energy's Cash Conversion Cycle Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Archaea Energy's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Archaea Energy's Cash Conversion Cycle falls into.

Archaea Energy 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.

Archaea Energy's Cash Conversion Cycle for the fiscal year that ended in Dec. 2021 is calculated as

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	96.07	+	53.51	-	75.73
	=	73.85

Archaea Energy's Cash Conversion Cycle for the quarter that ended in Sep. 2022 is calculated as:

Cash Conversion Cycle	=	Days Sales Outstanding	+	Days Inventory	-	Days Payable
	=	34.39	+	16.5	-	38.35
	=	12.54

Archaea Energy (NYSE:LFG) 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.

Archaea Energy Cash Conversion Cycle Related Terms

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Archaea Energy (Archaea Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Independent Power Producers » Archaea Energy Inc (NYSE:LFG) » Definitions » Cash Conversion Cycle

Comparable Companies

Traded in Other Exchanges

N/A

Address

4444 Westheimer Road, Suite G450, Houston, TX, USA, 77027

Website

https://www.archaeaenergy.com

Archaea Energy Inc is a renewable natural gas (RNG) producer in the U.S., with an RNG platform developing, constructing, and operating RNG facilities to capture waste emissions and convert them into low-carbon fuel.

Executives

Ares Management Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
United States Power Fund Iii, L.p.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Edward P. Taibi	officer: GC, EVP Strat Init & Gov Aff	35 EAST 62ND STREET, NEW YORK NY 10065
Brian F Mccarthy	officer: Chief Investment Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Aria Renewable Energy Systems Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Corp	director, 10 percent owner	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Archaea Energy Llc	10 percent owner	500 TECHNOLOGY DRIVE, SECOND FLOOR, CANONSBURG PA 15317
Shalennial Fund I, L.p.	10 percent owner	102 EAST MAIN STREET, SECOND STORY, CARNEGIE PA 15106
Richard Walton	officer: President	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Nicholas Stork	director, officer: Chief Executive Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Lindsay Ellis	officer: General Counsel and Secretary	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Chad Bellah	officer: Chief Accounting Officer	C/O RICE ACQUISITION, 500 TECHNOLOGY DRIVE, 2ND FLOOR, CANONSBURG PA 15317
Eif Us Power Iv, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Eif Us Power Iii, Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Scott Parkes	director	C/O ARES MANAGEMENT CORP., 2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067