Megaport (ASX:MP1) Cash Conversion Cycle: 25.21 (As of Dec. 2025)


ASX:MP1 Megaport Ltd ASX:MP1
79 GF Score
Price A$20.26
GF Value A$16.70
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Megaport Cash Conversion Cycle?

Megaport ASX:MP1 -3.29% 79 Cash Conversion Cycle is 25.21 as of Dec. 2025. GuruFocus rates ASX:MP1 with a GF Score™ of 79/100 and a GF Value™ of A$16.70 (Modestly Overvalued). The stock has 5 warning signs investors should review.

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Megaport's Days Sales Outstanding for the six months ended in Dec. 2025 was 25.21.
Megaport's Days Inventory for the six months ended in Dec. 2025 was 0.
Megaport's Days Payable for the six months ended in Dec. 2025 was 0.
Therefore, Megaport's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2025 was 25.21.


Megaport  (ASX:MP1) 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.


Megaport Cash Conversion Cycle Related Terms


Megaport Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Megaport'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.

Megaport Cash Conversion Cycle Chart

Megaport Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.55 -59.95 -41.31 15.54 15.66

Megaport Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 36.28 -58.09 28.63 -65.15 25.21

ASX:MP1 vs MSFT, ORCL, PLTR: Cash Conversion Cycle Comparison

For the Software - Infrastructure subindustry, Megaport'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.


Megaport Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Megaport's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Megaport's Cash Conversion Cycle falls into.


ASX:MP1
79GF Score
Megaport Ltd ASX:MP1
Cash Conversion Cycle is just one metric. See GF Score™, valuation, warning signs, and more.
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Megaport 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.

Megaport's Cash Conversion Cycle for the fiscal year that ended in Jun. 2025 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=27.68+0-12.02
=15.66

Megaport's Cash Conversion Cycle for the quarter that ended in Dec. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=25.21+0-0
=25.21

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 25.21 mean?
Megaport (ASX:MP1) has a Cash Conversion Cycle of 25.21 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Megaport and its competitors.
Is Megaport's Cash Conversion Cycle too high?
Megaport's current Cash Conversion Cycle is 25.21. The Software industry median Cash Conversion Cycle is 32.53. Megaport's value of 25.21 is 22.5% below this industry median. Overall, Megaport has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Megaport's Cash Conversion Cycle compare to MSFT and ORCL?
Megaport's Cash Conversion Cycle of 25.21 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.53. Megaport's value of 25.21 is 22.5% 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.53, based on 2,807 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. Megaport's current Cash Conversion Cycle of 25.21 is 22.5% 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 Megaport and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Megaport's current Cash Conversion Cycle is 25.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Megaport stock overvalued right now?
Based on GuruFocus' analysis, Megaport (ASX:MP1) is currently considered Modestly Overvalued. The stock's GF Value™ is A$16.70, compared to a current price of A$20.26 — trading 21.3% above its estimated fair value. The current Cash Conversion Cycle is 25.21 and 22.5% below the Software industry median of 32.53. Megaport's overall GF Score™ is 79/100 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 Megaport (ASX:MP1), the current Cash Conversion Cycle is 25.21 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 Megaport (ASX:MP1) Overvalued in 2026?

Based on GuruFocus' analysis, Megaport stock appears to be overvalued. The current stock price of A$20.26 is trading 21.3% above its estimated GF Value™ of A$16.70. GuruFocus considers Megaport to be Modestly Overvalued.

Key valuation signals for ASX:MP1:

  • Cash Conversion Cycle: 25.21
  • GF Value™: A$16.70 vs. price of A$20.26 (21.3% above fair value)
  • GF Score™: 79/100 with 5 warning signs
  • Industry Position: 22.5% below the Software median

No single metric tells the full story. See the ASX:MP1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Megaport Business Description

Other Exchanges MGPPF:USA92J:Germany
Address 825 Ann Street, Level 3, Fortitude Valley, Brisbane, QLD, AUS, 4006
Megaport is one of the world's largest software-defined network service providers, enabling around 3,000 enterprise customers to connect to over 1,000 data centers throughout the world. Megaport's services mostly revolve around enabling enterprises to connect to cloud service providers, like Amazon Web Services, but it also offers services to enable businesses to connect across multiple data centers, to internet exchanges, and to buy compute capacity.
79GF Score

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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$20.26
Price
A$16.70
GF Value