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.
Advanced Braking Technology Cash Conversion Cycle Related Terms
Advanced Braking Technology 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.
ASX:ABV vs ORLY, AZO, GPC: Cash Conversion Cycle Comparison
For the Auto Parts subindustry, Advanced Braking Technology'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.
Advanced Braking Technology Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Advanced Braking Technology's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Advanced Braking Technology'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.
Advanced Braking Technology'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.
Advanced Braking Technology (ASX:ABV) has a Cash Conversion Cycle of 118.27 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Advanced Braking Technology and its competitors.
Is Advanced Braking Technology's Cash Conversion Cycle too high?
Advanced Braking Technology's current Cash Conversion Cycle is 118.27. The Vehicles & Parts industry median Cash Conversion Cycle is 67.42. Advanced Braking Technology's value of 118.27 is 75.4% above this industry median. Overall, Advanced Braking Technology has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Braking Technology's Cash Conversion Cycle compare to ORLY and AZO?
Advanced Braking Technology's Cash Conversion Cycle of 118.27 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.42. Advanced Braking Technology's value of 118.27 is 75.4% 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 Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.42, based on 1,325 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. Advanced Braking Technology's current Cash Conversion Cycle of 118.27 is 75.4% 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 Advanced Braking Technology and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Braking Technology's current Cash Conversion Cycle is 118.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Braking Technology stock overvalued right now?
Based on GuruFocus' analysis, Advanced Braking Technology (ASX:ABV) is currently considered Fairly Valued. The stock's GF Value™ is A$0.11, compared to a current price of A$0.11 — trading right at its estimated fair value. The current Cash Conversion Cycle is 118.27 and 75.4% above the Vehicles & Parts industry median of 67.42. Advanced Braking Technology's overall GF Score™ is 68/100 with 2 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 Advanced Braking Technology (ASX:ABV), the current Cash Conversion Cycle is 118.27 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.
Is Advanced Braking Technology (ASX:ABV) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Braking Technology stock appears to be undervalued.
The current stock price of A$0.11 is trading 0% below its estimated GF Value™ of A$0.11.
GuruFocus considers Advanced Braking Technology to be Fairly Valued.
Key valuation signals for ASX:ABV:
Cash Conversion Cycle: 118.27
GF Value™: A$0.11 vs. price of A$0.11 (0% below fair value)
Industry Position: 75.4% above the Vehicles & Parts median
No single metric tells the full story. See the ASX:ABV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Braking Technology Ltd is an Australian firm engaged in the commercialization, research, development, and manufacture of the ABT Failsafe Brakes, ABT Failsafe Emergency Driveline Brakes, Terra Dura Brakes, and associated braking systems. It develops its product portfolio for a diverse range of industries such as mining, defense, civil construction, and waste management industries.
68GF Score
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