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.
Matrix Composites & Engineering Cash Conversion Cycle Related Terms
Matrix Composites & Engineering 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:MCE vs PWR, FIX, EME: Cash Conversion Cycle Comparison
For the Engineering & Construction subindustry, Matrix Composites & Engineering'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.
Matrix Composites & Engineering Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Matrix Composites & Engineering's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Matrix Composites & Engineering'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.
* 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.
Matrix Composites & Engineering (ASX:MCE) has a Cash Conversion Cycle of 79.44 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Matrix Composites & Engineering and its competitors.
Is Matrix Composites & Engineering's Cash Conversion Cycle too high?
Matrix Composites & Engineering's current Cash Conversion Cycle is 79.44. The Construction industry median Cash Conversion Cycle is 55.89. Matrix Composites & Engineering's value of 79.44 is 42.1% above this industry median. Overall, Matrix Composites & Engineering has a GF Score™ of 38/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Matrix Composites & Engineering's Cash Conversion Cycle compare to PWR and FIX?
Matrix Composites & Engineering's Cash Conversion Cycle of 79.44 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.89. Matrix Composites & Engineering's value of 79.44 is 42.1% 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.89, based on 1,768 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. Matrix Composites & Engineering's current Cash Conversion Cycle of 79.44 is 42.1% 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 Matrix Composites & Engineering and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix Composites & Engineering's current Cash Conversion Cycle is 79.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix Composites & Engineering stock overvalued right now?
Based on GuruFocus' analysis, Matrix Composites & Engineering (ASX:MCE) is currently considered Fairly Valued. The stock's GF Value™ is A$0.38, compared to a current price of A$0.40 — trading 3.9% above its estimated fair value. The current Cash Conversion Cycle is 79.44 and 42.1% above the Construction industry median of 55.89. Matrix Composites & Engineering's overall GF Score™ is 38/100 with 10 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 Matrix Composites & Engineering (ASX:MCE), the current Cash Conversion Cycle is 79.44 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 Matrix Composites & Engineering (ASX:MCE) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix Composites & Engineering stock appears to be overvalued.
The current stock price of A$0.40 is trading 3.9% above its estimated GF Value™ of A$0.38.
GuruFocus considers Matrix Composites & Engineering to be Fairly Valued.
Key valuation signals for ASX:MCE:
Cash Conversion Cycle: 79.44
GF Value™: A$0.38 vs. price of A$0.40 (3.9% above fair value)
Industry Position: 42.1% above the Construction median
No single metric tells the full story. See the ASX:MCE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix Composites & Engineering Business Description
Matrix Composites & Engineering Ltd is a manufacturer of engineered products and services for the offshore oil and gas, civil and infrastructure, and defence industry. The group is also involved in the businesses of manufacturing and supplying capital drilling equipment, consisting of syntactic foam buoyancy; manufacturing and supply of subsea umbilical risers and flowline (SURF) ancillary equipment and associated services; and manufacturing and supply of well construction products, including centralizers and conductors. Its products consist of buoyancy systems, epoxy resin systems, energy absorption systems, reinforced thermoplastics, and others. Geographically, it derives maximum revenue from Brazil and rest from Australia, Japan, China, the United States of America, and other regions.
38GF Score
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