Applied Materials's Days Sales Outstanding for the
three
months ended in Apr. 2026 was 65.46.
Applied Materials's Days Inventory for the
three
months ended in Apr. 2026 was 142.07.
Applied Materials's Days Payable for the
three
months ended in Apr. 2026 was 47.44.
Therefore, Applied Materials's Cash Conversion Cycle (CCC) for the
three
months ended in Apr. 2026 was 160.09.
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.
Applied Materials Cash Conversion Cycle Related Terms
Applied Materials Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Applied Materials'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.
AMAT vs LRCX, KLAC, TER: Cash Conversion Cycle Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials'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.
Applied Materials Cash Conversion Cycle vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Applied Materials's Cash Conversion Cycle falls into.
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.
Applied Materials's Cash Conversion Cycle for the fiscal year that ended in Oct. 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.
Applied Materials (AMAT) has a Cash Conversion Cycle of 160.09 as of Apr. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Applied Materials and its competitors.
Is Applied Materials' Cash Conversion Cycle too high?
Applied Materials' current Cash Conversion Cycle is 160.09. The Semiconductors industry median Cash Conversion Cycle is 116.21. Applied Materials' value of 160.09 is 37.8% above this industry median. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Cash Conversion Cycle compare to LRCX and KLAC?
Applied Materials' Cash Conversion Cycle of 160.09 can be compared against companies in the Semiconductors industry. The industry median Cash Conversion Cycle is 116.21. Applied Materials' value of 160.09 is 37.8% 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 116.21, based on 1,023 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. Applied Materials's current Cash Conversion Cycle of 160.09 is 37.8% 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 Applied Materials and its competitors. For the Semiconductors industry, the median Cash Conversion Cycle is 116.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Applied Materials's current Cash Conversion Cycle is 160.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Based on GuruFocus' analysis, Applied Materials (AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $217.59, compared to a current price of $629.34 — trading 189.2% above its estimated fair value. The current Cash Conversion Cycle is 160.09 and 37.8% above the Semiconductors industry median of 116.21. Applied Materials' overall GF Score™ is 85/100 with 6 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 Applied Materials (AMAT), the current Cash Conversion Cycle is 160.09 as of Apr. 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 Applied Materials (AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of $629.34 is trading 189.2% above its estimated GF Value™ of $217.59.
GuruFocus considers Applied Materials to be Significantly Overvalued.
Key valuation signals for AMAT:
Cash Conversion Cycle: 160.09
GF Value™: $217.59 vs. price of $629.34 (189.2% above fair value)
Industry Position: 37.8% above the Semiconductors median
No single metric tells the full story. See the AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
85GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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