ALD (Altech Digital Co) Cash Conversion Cycle: 18.09 (As of Mar. 2025)


What is Altech Digital Co Cash Conversion Cycle?

Altech Digital Co ALD Cash Conversion Cycle is 18.09 as of Mar. 2025.

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

Altech Digital Co's Days Sales Outstanding for the six months ended in Mar. 2025 was 18.09.
Altech Digital Co's Days Inventory for the six months ended in Mar. 2025 was 0.
Altech Digital Co's Days Payable for the six months ended in Mar. 2025 was 0.
Therefore, Altech Digital Co's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2025 was 18.09.

Altech Digital Co  (NAS:ALD) 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.

Altech Digital Co Cash Conversion Cycle Related Terms

Altech Digital Co Cash Conversion Cycle Historical Data

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The historical data trend for Altech Digital Co'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.

Altech Digital Co Cash Conversion Cycle Chart

Altech Digital Co Annual Data
Trend Mar24 Mar25
Cash Conversion Cycle
36.81 18.09

Altech Digital Co Semi-Annual Data
Mar24 Mar25
Cash Conversion Cycle 36.81 18.09

ALD vs : Cash Conversion Cycle Comparison

For the Information Technology Services subindustry, Altech Digital Co'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.

Altech Digital Co Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Altech Digital Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Altech Digital Co's Cash Conversion Cycle falls into.


Altech Digital Co 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.

Altech Digital Co's Cash Conversion Cycle for the fiscal year that ended in Mar. 2025 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=18.09+0-0
=18.09

Altech Digital Co's Cash Conversion Cycle for the quarter that ended in Mar. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=18.09+0-0
=18.09

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 18.09 mean?
Altech Digital Co (ALD) has a Cash Conversion Cycle of 18.09 as of Mar. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Altech Digital Co and its competitors.
Is Altech Digital Co's Cash Conversion Cycle too high?
Altech Digital Co's current Cash Conversion Cycle is 18.09. The Software industry median Cash Conversion Cycle is 32.56. Altech Digital Co's value of 18.09 is 44.4% below this industry median.
How does Altech Digital Co's Cash Conversion Cycle compare to ?
Altech Digital Co's Cash Conversion Cycle of 18.09 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.56. Altech Digital Co's value of 18.09 is 44.4% below 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.56, based on 2,805 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. Altech Digital Co's current Cash Conversion Cycle of 18.09 is 44.4% below 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 Altech Digital Co and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Altech Digital Co's current Cash Conversion Cycle is 18.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Altech Digital Co stock overvalued right now?
Altech Digital Co (ALD) has a current Cash Conversion Cycle of 18.09. The current Cash Conversion Cycle is 18.09 and 44.4% below the Software industry median of 32.56. 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 Altech Digital Co (ALD), the current Cash Conversion Cycle is 18.09 as of Mar. 2025. 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.

Altech Digital Co Business Description

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Address 100 Cyberport Road, Units 608-61, Level 6, Core C, Cyberport 3, Pok Fu Lam, Hong Kong, HKG
Altech Digital Co Ltd is an IT solutions service provider and it operates its business in Hong Kong through its indirect wholly-owned Operating Subsidiary. The company focuses on providing comprehensive and inventive solutions designed to optimize business performance of its customers, meet various industry-specific operational challenges and create new business opportunities for them. It offers services to customers from a variety of industries including multinational financial services, property development and business solutions services. Its IT solutions services can be categorized into (i) system development services; and (ii) system maintenance and consultancy services.