Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) 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.
Ras AL Khaimah Ceramics Co PSC Cash Conversion Cycle Related Terms
Ras AL Khaimah Ceramics Co PSC Cash Conversion Cycle Historical Data
* 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.
Ras AL Khaimah Ceramics Co PSC Cash Conversion Cycle Chart
ADX:RAKCEC vs TT, JCI, CARR: Cash Conversion Cycle Comparison
For the Building Products & Equipment subindustry, Ras AL Khaimah Ceramics Co PSC'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.
Ras AL Khaimah Ceramics Co PSC Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Ras AL Khaimah Ceramics Co PSC's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Ras AL Khaimah Ceramics Co PSC's Cash Conversion Cycle falls into.
Ras AL Khaimah Ceramics Co PSC 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.
* 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.
Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) has a Cash Conversion Cycle of 305.04 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Ras AL Khaimah Ceramics Co PSC and its competitors.
Is Ras AL Khaimah Ceramics Co PSC's Cash Conversion Cycle too high?
Ras AL Khaimah Ceramics Co PSC's current Cash Conversion Cycle is 305.04. The Construction industry median Cash Conversion Cycle is 55.83. Ras AL Khaimah Ceramics Co PSC's value of 305.04 is 446.4% above this industry median. Overall, Ras AL Khaimah Ceramics Co PSC has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ras AL Khaimah Ceramics Co PSC's Cash Conversion Cycle compare to TT and JCI?
Ras AL Khaimah Ceramics Co PSC's Cash Conversion Cycle of 305.04 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.83. Ras AL Khaimah Ceramics Co PSC's value of 305.04 is 446.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Construction company?
The median Cash Conversion Cycle among Construction companies is 55.83, based on 1,761 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ras AL Khaimah Ceramics Co PSC's current Cash Conversion Cycle of 305.04 is 446.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Ras AL Khaimah Ceramics Co PSC and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ras AL Khaimah Ceramics Co PSC's current Cash Conversion Cycle is 305.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ras AL Khaimah Ceramics Co PSC stock overvalued right now?
Based on GuruFocus' analysis, Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) is currently considered Fairly Valued. The stock's GF Value™ is د.إ2.47, compared to a current price of د.إ2.42 — trading 2% below its estimated fair value. The current Cash Conversion Cycle is 305.04 and 446.4% above the Construction industry median of 55.83. Ras AL Khaimah Ceramics Co PSC's overall GF Score™ is 78/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC), the current Cash Conversion Cycle is 305.04 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) Overvalued in 2026?
Based on GuruFocus' analysis, Ras AL Khaimah Ceramics Co PSC stock appears to be undervalued.
The current stock price of د.إ2.42 is trading 2% below its estimated GF Value™ of د.إ2.47.
GuruFocus considers Ras AL Khaimah Ceramics Co PSC to be Fairly Valued.
Key valuation signals for ADX:RAKCEC:
Cash Conversion Cycle: 305.04
GF Value™: د.إ2.47 vs. price of د.إ2.42 (2% below fair value)
Industry Position: 446.4% above the Construction median
No single metric tells the full story. See the ADX:RAKCEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ras AL Khaimah Ceramics Co PSC Business Description
Ras AL Khaimah Ceramics Co PSC is engaged in the manufacturing & sale of a variety of ceramic products, including tiles, bathroom sets, sanitary wares, table wares, & faucets. The company's reportable segments are: Ceramics products, which generate key revenue & include the manufacturing & sale of ceramic wall and floor tiles, gres porcellanato, bath-ware, & tableware products. The Faucets segment includes the manufacturing & sale of Taps & Faucets. Other industrial segments include manufacturing & distribution of power, paints, plastics, mines, & chemicals. Others include security services, material movement, real estate, construction projects, & civil works. Geographically, the company generates substantial revenue from the UAE, Europe, India, Saudi Arabia, Bangladesh, & Other countries.
78GF Score
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