Effectively decreasing a company’s Cash Conversion Cycle is a sign of good management for the small cap healthcare stocks on our list
SmallCapPower | November 2, 2016: The cash conversion cycle (CCC) is a measure of how long it takes a company, in days, to convert material resources into cash. It is calculated by adding the days receivables outstanding, to the days inventory outstanding and subtracting the days payables outstanding. By decreasing the CCC, a company is better able to generate physical cash and tells how long the company could be without it if it invests money in other opportunities. It is a sign of management efficiency at judging credit worthiness for customers, operating efficiently by keeping inventory lower and obtaining favorable and more often than not, longer terms for paying suppliers. That being said, the small cap healthcare stocks on our list today have all shown that they have increased their overall efficiency by decreasing their CCC cycles over the past two fiscal quarters.
CRH Medical Corp. (TSE:CRH) – $6.50
Medical Equipment, Supplies & Distribution
CRH Medical Corporation, formerly Medsurge Medical Products Corp., is a healthcare products and services company that operates through segments, including the sale of medical products and the provision of anesthesia services. The Company specializes in the treatment of hemorrhoids utilizing its treatment protocol and technology. The Company also provides anesthesiology services to gastroenterologists in the southeastern United States through its subsidiaries.
- Market Cap: $470.51(mm)
- YTD Price PCT Change: 58.5%
- CCC FQ-1(Days): 76.39
- CCC FQ0 (Days): 68.06
Immunotec Inc. (CVE:IMM) – $0.37
Pharmaceuticals
Immunotec Inc. is a Canada-based company that develops, manufactures, markets and sells research-driven nutritional products through direct-to-consumer sales channels in Canada, the United States and Mexico. The Company also subcontracts certain distribution logistics and manufacturing capacity activities in the United States, Europe and Mexico to support its activities. It manufactures and sells natural health products, dietary supplements and cosmetics, and sells them under a network marketing business model.
- Market Cap: $25.48(mm)
- YTD Price PCT Change: 32.7%
- CCC FQ-1(Days): 238.91
- CCC FQ0 (Days): 169.10
Extendicare Inc. (TSE:EXE) – $9.22
Healthcare Facilities & Services
Extendicare Inc. is a Canada-based company, which owns and operates long-term care centers, and provides publicly-funded home healthcare services. The Company operates approximately 120 senior care and living centers across over four provinces in Canada. Its segments include Long-term Care; Retirement Living; Home Health Care; Other Canadian Operations, and Corporate Canada.
- Market Cap: $816.47(mm)
- YTD Price PCT Change: -4.5%
- CCC FQ-1(Days): -68.62
- CCC FQ0 (Days): -83.25
Nobilis Health Corp. (TSE:NHC) – $4.45
Healthcare Facilities & Services
Nobilis Health Corp. (Nobilis) owns and manages healthcare facilities in Texas and Arizona, consisting primarily of ambulatory surgery centers (ASCs) and acute-care and surgical hospitals. The Company’s segments include Medical Services, Marketing Services and Corporate.
- Market Cap: $342.38(mm)
- YTD Price PCT Change: 13.8%
- CCC FQ-1(Days): 435.60
- CCC FQ0 (Days): 354.29
