Home > Boards > US Listed > Oil/Gas/Natural Energy Production > Sunoco Logistics Partners L.P. (SXL)
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Friday, May 27, 2011 12:11:12 PM

Re: None

Post# of 38
Break down of SXL's profits.



Quote:
Let's break this down
In this series, we measure how swiftly a company turns cash into goods or services and back into cash. We'll use a quick, relatively foolproof metric known as the cash conversion cycle, or CCC for short.

Why does the CCC matter? The less time it takes a firm to convert outgoing cash into incoming cash, the more powerful and flexible its profit engine is. The less money tied up in inventory and accounts receivable, the more available to grow the company, pay investors, or both.

To calculate the cash conversion cycle, add days inventory outstanding (DIO) to days sales outstanding (DSO), then subtract days payable outstanding (DPO). Like golf, the lower your score here, the better.

Here's the CCC for Sunoco Logistics Partners, alongside comparable figures from a few competitors and peers.

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 2M
  • 3M
  • 6M
  • 1Y
  • 2Y
  • 3Y
  • 5Y