ALFABS AUSTRALIA's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 52.91.
ALFABS AUSTRALIA's Days Inventory for the
six
months ended in Dec. 2025 was 122.2.
ALFABS AUSTRALIA's Days Payable for the
six
months ended in Dec. 2025 was 132.66.
Therefore, ALFABS AUSTRALIA's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 42.45.
ALFABS AUSTRALIA (ASX:AAL) 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.
ALFABS AUSTRALIA Cash Conversion Cycle Related Terms
ALFABS AUSTRALIA Cash Conversion Cycle Historical Data
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The historical data trend for ALFABS AUSTRALIA'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.
ASX:AAL vs HON, MMM: Cash Conversion Cycle Comparison
For the Conglomerates subindustry, ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA Cash Conversion Cycle vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA's Cash Conversion Cycle falls into.
ALFABS AUSTRALIA 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.
ALFABS AUSTRALIA's Cash Conversion Cycle for the fiscal year that ended in Jun. 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.
ALFABS AUSTRALIA (ASX:AAL) has a Cash Conversion Cycle of 42.45 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on ALFABS AUSTRALIA and its competitors.
Is ALFABS AUSTRALIA's Cash Conversion Cycle too high?
ALFABS AUSTRALIA's current Cash Conversion Cycle is 42.45. The Conglomerates industry median Cash Conversion Cycle is 70.95. ALFABS AUSTRALIA's value of 42.45 is 40.2% below this industry median. Overall, ALFABS AUSTRALIA has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's Cash Conversion Cycle compare to HON and MMM?
ALFABS AUSTRALIA's Cash Conversion Cycle of 42.45 can be compared against companies in the Conglomerates industry. The industry median Cash Conversion Cycle is 70.95. ALFABS AUSTRALIA's value of 42.45 is 40.2% 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 Conglomerates company?
The median Cash Conversion Cycle among Conglomerates companies is 70.95, based on 546 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. ALFABS AUSTRALIA's current Cash Conversion Cycle of 42.45 is 40.2% 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 ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median Cash Conversion Cycle is 70.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current Cash Conversion Cycle is 42.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current Cash Conversion Cycle of 42.45. The current Cash Conversion Cycle is 42.45 and 40.2% below the Conglomerates industry median of 70.95. ALFABS AUSTRALIA's overall GF Score™ is 20/100 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 ALFABS AUSTRALIA (ASX:AAL), the current Cash Conversion Cycle is 42.45 as of Dec. 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.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
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