Aehr Test Systems's Days Sales Outstanding for the
three
months ended in Feb. 2026 was 97.73.
Aehr Test Systems's Days Inventory for the
three
months ended in Feb. 2026 was 551.08.
Aehr Test Systems's Days Payable for the
three
months ended in Feb. 2026 was 37.12.
Therefore, Aehr Test Systems's Cash Conversion Cycle (CCC) for the
three
months ended in Feb. 2026 was 611.69.
Aehr Test Systems (NAS:AEHR) 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.
Aehr Test Systems Cash Conversion Cycle Related Terms
Aehr Test Systems Cash Conversion Cycle Historical Data
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The historical data trend for Aehr Test Systems'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.
AEHR vs COHU, AMBA, ICHR: Cash Conversion Cycle Comparison
For the Semiconductor Equipment & Materials subindustry, Aehr Test Systems'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.
Aehr Test Systems Cash Conversion Cycle vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Aehr Test Systems's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Aehr Test Systems's Cash Conversion Cycle falls into.
Aehr Test Systems 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.
Aehr Test Systems's Cash Conversion Cycle for the fiscal year that ended in May. 2025 is calculated as
* 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.
Aehr Test Systems (AEHR) has a Cash Conversion Cycle of 611.69 as of Feb. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Aehr Test Systems and its competitors.
Is Aehr Test Systems' Cash Conversion Cycle too high?
Aehr Test Systems' current Cash Conversion Cycle is 611.69. The Semiconductors industry median Cash Conversion Cycle is 116.11. Aehr Test Systems' value of 611.69 is 426.8% above this industry median. Overall, Aehr Test Systems has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aehr Test Systems' Cash Conversion Cycle compare to COHU and AMBA?
Aehr Test Systems' Cash Conversion Cycle of 611.69 can be compared against companies in the Semiconductors industry. The industry median Cash Conversion Cycle is 116.11. Aehr Test Systems' value of 611.69 is 426.8% 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 Semiconductors company?
The median Cash Conversion Cycle among Semiconductors companies is 116.11, based on 1,021 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. Aehr Test Systems's current Cash Conversion Cycle of 611.69 is 426.8% 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 Aehr Test Systems and its competitors. For the Semiconductors industry, the median Cash Conversion Cycle is 116.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aehr Test Systems's current Cash Conversion Cycle is 611.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aehr Test Systems stock overvalued right now?
Based on GuruFocus' analysis, Aehr Test Systems (AEHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $14.36, compared to a current price of $94.77 — trading 560% above its estimated fair value. The current Cash Conversion Cycle is 611.69 and 426.8% above the Semiconductors industry median of 116.11. Aehr Test Systems' overall GF Score™ is 62/100 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 Aehr Test Systems (AEHR), the current Cash Conversion Cycle is 611.69 as of Feb. 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 Aehr Test Systems (AEHR) Overvalued in 2026?
Based on GuruFocus' analysis, Aehr Test Systems stock appears to be overvalued.
The current stock price of $94.77 is trading 560% above its estimated GF Value™ of $14.36.
GuruFocus considers Aehr Test Systems to be Significantly Overvalued.
Key valuation signals for AEHR:
Cash Conversion Cycle: 611.69
GF Value™: $14.36 vs. price of $94.77 (560% above fair value)
Industry Position: 426.8% above the Semiconductors median
No single metric tells the full story. See the AEHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aehr Test Systems is engaged in test systems for burning-in and testing logic, optical, and memory integrated circuits. Increased quality and reliability needs of the Automotive and Mobility integrated circuit markets. The Company operates in one business segment, the designing, manufacturing, marketing and selling of advanced test and burn-in products to the semiconductor manufacturing industry in several geographic areas. The company provides production solutions across the product manufacturing flow to improve yield and reliability and has developed and introduced several inventive products, including the ABTSTM and FOX-PTM families of test and burn-in systems and FOX WaferPakTM Aligner, FOX-XP WaferPak Contactor, FOX DiePak Carrier and FOX DiePak Loader.
62GF Score
Get the complete analysis for AEHR
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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