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Digi International (Digi International) Cash Conversion Cycle : 147.90 (As of Mar. 2024)


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What is Digi International Cash Conversion Cycle?

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

Digi International's Days Sales Outstanding for the three months ended in Mar. 2024 was 56.52.
Digi International's Days Inventory for the three months ended in Mar. 2024 was 130.47.
Digi International's Days Payable for the three months ended in Mar. 2024 was 39.09.
Therefore, Digi International's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 147.90.


Digi International Cash Conversion Cycle Historical Data

The historical data trend for Digi International'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.

Digi International Cash Conversion Cycle Chart

Digi International Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 140.15 132.33 118.53 110.29 136.60

Digi International Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 145.34 155.02 155.33 160.19 147.90

Competitive Comparison of Digi International's Cash Conversion Cycle

For the Communication Equipment subindustry, Digi International'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.


Digi International's Cash Conversion Cycle Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Digi International's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Digi International's Cash Conversion Cycle falls into.



Digi International 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.

Digi International's Cash Conversion Cycle for the fiscal year that ended in Sep. 2023 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=43.67+139.84-46.91
=136.60

Digi International's Cash Conversion Cycle for the quarter that ended in Mar. 2024 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=56.52+130.47-39.09
=147.90

* 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.


Digi International  (NAS:DGII) 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.


Digi International Cash Conversion Cycle Related Terms

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


Digi International (Digi International) Business Description

Traded in Other Exchanges
Address
9350 Excelsior Boulevard, Suite 700, Hopkins, MN, USA, 55343
Digi International Inc is a Minnesota corporation. The company provides business and mission-critical and Internet of Things (IoT) connectivity products and services. It has two segments: IoT Products and Services and IoT Solutions. The IoT Products and Services segment consists of distinct communications products and communication product development services. IoT Solutions segment offers wireless temperature and other environmental condition monitoring services as well as employee task management services. The company generates majority of its revenue from the IoT Products & Services segment. Geographically, the company generates majority of its revenue from its business in the United States and also has its presence in Europe, Middle East and Africa and Rest of the world.
Executives
Terrence G. Schneider officer: VP, Supply Chain 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
David H. Sampsell officer: VP, Corp. Dev, GC & Corp. Sec. 9350 EXCELSIOR BLVD, HOPKINS MN 55343
James J. Loch officer: Chief Financial Officer 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Ronald Konezny director, officer: President and CEO C/O DIGI INTERNATIONAL INC., 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Radha Chavali officer: VP, Technology Services 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Tracy L. Roberts officer: VP, Technology Services 9350 EXCELSIOR BLVD, HOPKINS MN 55343
Kevin C. Riley officer: President, Digi SmartSense 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Michael A. Ueland officer: President of Products 216 BRIDLE CREEK DRIVE, CARY NC 27513
Jon A. Nyland officer: VP, Manufacturing Operations 11001 BREN ROAD EAST, MINNETONKA MN 55343
Brian G. Ballenger officer: VP Fin, Acting PFO & PAO 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Hatem H. Naguib director 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343
Ahmed Nawaz director 1110 AMERICAN PARKWAY NE, ALLENTOWN PA 18109
Gokul V Hemmady officer: Senior VP/CFO/Treasurer P.O. BOX 1101, MS067, MINNEAPOLIS MN 55440-1101
Sally J Smith director 5500 WAYZATA BLVD., SUITE 1600, MINNEAPOLIS MN 55416
Christopher Heim director C/O DIGI INTERNATIONAL INC., 9350 EXCELSIOR BLVD, SUITE 700, HOPKINS MN 55343

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