GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Limbach Holdings Inc (NAS:LMB) » Definitions » Cash Conversion Cycle

Limbach Holdings (Limbach Holdings) Cash Conversion Cycle : 13.42 (As of Mar. 2024)


View and export this data going back to 2014. Start your Free Trial

What is Limbach Holdings Cash Conversion Cycle?

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

Limbach Holdings's Days Sales Outstanding for the three months ended in Mar. 2024 was 74.25.
Limbach Holdings's Days Inventory for the three months ended in Mar. 2024 was 0.
Limbach Holdings's Days Payable for the three months ended in Mar. 2024 was 60.83.
Therefore, Limbach Holdings's Cash Conversion Cycle (CCC) for the three months ended in Mar. 2024 was 13.42.


Limbach Holdings Cash Conversion Cycle Historical Data

The historical data trend for Limbach Holdings'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.

Limbach Holdings Cash Conversion Cycle Chart

Limbach Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.53 3.92 6.24 15.61 14.00

Limbach Holdings 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 19.41 14.56 16.13 13.52 13.42

Competitive Comparison of Limbach Holdings's Cash Conversion Cycle

For the Building Products & Equipment subindustry, Limbach Holdings'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.


Limbach Holdings's Cash Conversion Cycle Distribution in the Construction Industry

For the Construction industry and Industrials sector, Limbach Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Limbach Holdings's Cash Conversion Cycle falls into.



Limbach Holdings 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.

Limbach Holdings'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
=78.53+0-64.53
=14.00

Limbach Holdings'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
=74.25+0-60.83
=13.42

* 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.


Limbach Holdings  (NAS:LMB) 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.


Limbach Holdings Cash Conversion Cycle Related Terms

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


Limbach Holdings (Limbach Holdings) Business Description

Traded in Other Exchanges
Address
797 Commonwealth Drive, Warrendale, PA, USA, 15086
Limbach Holdings Inc is a commercial specialty contractor in the fields of heating, ventilation, air conditioning, plumbing, electrical, and building controls for the design and construction of new and renovated buildings, maintenance services, energy retrofits, and equipment upgrades. It operates in two segments namely General Contractor Relationships (GCR) and Owner Direct Relationships (ODR). The company generates maximum revenue from the GCR segment.
Executives
Jayme L. Brooks officer: EVP & Chief Financial Officer 21211 NORDHOFF STREET, CHATSWORTH CA 91311
Michael M Mccann officer: Chief Operating Officer 797 COMMONWEALTH DRIVE, WARRENDALE PA 15086
Norbert W. Young director 31-35TH STREET, PITTSBURGH PA 15201
Gordon G Pratt director, officer: President and CEO 1101 BRICKELL AVENUE, SOUTH TOWER, 8TH FLOOR, MIAMI FL 33131
Jay Sharp officer: President of Limbach 797 COMMWEALTH DRIVE, WARRENDALE PA 15086
Nicholas Angerosa officer: President of Harper 797 COMMWEALTH DRIVE, WARRENDALE PA 15086
Joshua Horowitz director 72-38 113TH STREET, APARTMENT 3L, FOREST HILLS NY 11375
Bacon Charles A. Iii officer: President and CEO 31-35TH STREET, PITTSBURGH PA 15201
Linda G Alvarado director 2140 LAKE PARK BOULEVARD, RICHARDSON TX 75080-2254
Laurel J Krzeminski director 585 WEST BEACH STREET, PO BOX 50085, WATSONVILLE CA 95076
1347 Investors Llc 10 percent owner 150 PIERCE ROAD, 6TH FLOOR, ITASCA IL 60143
Palm Global Small Cap Master Fund Lp director C/O PALM MANAGEMENT (US) LLC, 19 WEST ELM STREET, GREENWICH CT 06830
Bradley C Palmer other: Director by Deputization C/O PALM MANAGEMENT (US) LLC, 19 WEST ELM STREET, GREENWICH CT 06830
Palm Management (us) Llc director 19 WEST ELM STREET, GREENWICH CT 06830
Kingsway Financial Services Inc 10 percent owner 10 S. RIVERSIDE PLAZA, SUITE 1520, CHICAGO IL 60606