Australian Ethical Investment (ASX:AEF) 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.
Australian Ethical Investment Cash Conversion Cycle Related Terms
Australian Ethical Investment 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.
Australian Ethical Investment Cash Conversion Cycle Chart
ASX:AEF vs BLK, BX, KKR: Cash Conversion Cycle Comparison
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment Cash Conversion Cycle vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's Cash Conversion Cycle falls into.
Australian Ethical Investment 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.
* 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.
Australian Ethical Investment (ASX:AEF) has a Cash Conversion Cycle of 36.67 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Australian Ethical Investment and its competitors.
Is Australian Ethical Investment's Cash Conversion Cycle too high?
Australian Ethical Investment's current Cash Conversion Cycle is 36.67. The Asset Management industry median Cash Conversion Cycle is 4.78. Australian Ethical Investment's value of 36.67 is 667.2% above this industry median. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's Cash Conversion Cycle compare to BLK and BX?
Australian Ethical Investment's Cash Conversion Cycle of 36.67 can be compared against companies in the Asset Management industry. The industry median Cash Conversion Cycle is 4.78. Australian Ethical Investment's value of 36.67 is 667.2% 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 an Asset Management company?
The median Cash Conversion Cycle among Asset Management companies is 4.78, based on 603 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. Australian Ethical Investment's current Cash Conversion Cycle of 36.67 is 667.2% 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 Australian Ethical Investment and its competitors. For the Asset Management industry, the median Cash Conversion Cycle is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current Cash Conversion Cycle is 36.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.14 — trading 34.9% below its estimated fair value. The current Cash Conversion Cycle is 36.67 and 667.2% above the Asset Management industry median of 4.78. Australian Ethical Investment's overall GF Score™ is 98/100 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 Australian Ethical Investment (ASX:AEF), the current Cash Conversion Cycle is 36.67 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.14 is trading 34.9% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
Cash Conversion Cycle: 36.67
GF Value™: A$6.36 vs. price of A$4.14 (34.9% below fair value)
Industry Position: 667.2% above the Asset Management median
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
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