Sigma Healthcare (ASX:SIG) Cash Conversion Cycle: 53.27 (As of Dec. 2025)


ASX:SIG Sigma Healthcare Ltd ASX:SIG
59 GF Score
Price A$2.80
GF Value A$0.37
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Sigma Healthcare Cash Conversion Cycle?

Sigma Healthcare ASX:SIG +1.08% 59 Cash Conversion Cycle is 53.27 as of Dec. 2025. GuruFocus rates ASX:SIG with a GF Score™ of 59/100 and a GF Value™ of A$0.37 (Significantly Overvalued). The stock has 8 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.

Sigma Healthcare's Days Sales Outstanding for the six months ended in Dec. 2025 was 68.66.
Sigma Healthcare's Days Inventory for the six months ended in Dec. 2025 was 45.18.
Sigma Healthcare's Days Payable for the six months ended in Dec. 2025 was 60.57.
Therefore, Sigma Healthcare's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2025 was 53.27.


Sigma Healthcare  (ASX:SIG) 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.


Sigma Healthcare Cash Conversion Cycle Related Terms


Sigma Healthcare Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Sigma Healthcare'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.

Sigma Healthcare Cash Conversion Cycle Chart

Sigma Healthcare Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
Cash Conversion Cycle
Get a 7-Day Free Trial Premium Member Only Premium Member Only 29.33 33.56 28.62 24.44 29.38

Sigma Healthcare Semi-Annual Data
Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24 Jan25 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 25.27 23.52 23.88 25.25 53.27

ASX:SIG vs MCK, CAH, COR: Cash Conversion Cycle Comparison

For the Medical Distribution subindustry, Sigma Healthcare'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.


Sigma Healthcare Cash Conversion Cycle vs Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, Sigma Healthcare's Cash Conversion Cycle distribution charts can be found below:

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


ASX:SIG
59GF Score
Sigma Healthcare Ltd ASX:SIG
Cash Conversion Cycle is just one metric. See GF Score™, valuation, warning signs, and more.
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Sigma Healthcare 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.

Sigma Healthcare's Cash Conversion Cycle for the fiscal year that ended in Jan. 2025 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=46.39+24.2-41.21
=29.38

Sigma Healthcare'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
=68.66+45.18-60.57
=53.27

* 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 53.27 mean?
Sigma Healthcare (ASX:SIG) has a Cash Conversion Cycle of 53.27 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sigma Healthcare and its competitors.
Is Sigma Healthcare's Cash Conversion Cycle too high?
Sigma Healthcare's current Cash Conversion Cycle is 53.27. The Medical Distribution industry median Cash Conversion Cycle is 55.95. Sigma Healthcare's value of 53.27 is 4.8% below this industry median. Overall, Sigma Healthcare has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sigma Healthcare's Cash Conversion Cycle compare to MCK and CAH?
Sigma Healthcare's Cash Conversion Cycle of 53.27 can be compared against companies in the Medical Distribution industry. The industry median Cash Conversion Cycle is 55.95. Sigma Healthcare's value of 53.27 is 4.8% 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 Medical Distribution company?
The median Cash Conversion Cycle among Medical Distribution companies is 55.95, based on 117 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. Sigma Healthcare's current Cash Conversion Cycle of 53.27 is 4.8% 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 Sigma Healthcare and its competitors. For the Medical Distribution industry, the median Cash Conversion Cycle is 55.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sigma Healthcare's current Cash Conversion Cycle is 53.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sigma Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sigma Healthcare (ASX:SIG) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.37, compared to a current price of A$2.80 — trading 656.8% above its estimated fair value. The current Cash Conversion Cycle is 53.27 and 4.8% below the Medical Distribution industry median of 55.95. Sigma Healthcare's overall GF Score™ is 59/100 with 8 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 Sigma Healthcare (ASX:SIG), the current Cash Conversion Cycle is 53.27 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 Sigma Healthcare (ASX:SIG) Overvalued in 2026?

Based on GuruFocus' analysis, Sigma Healthcare stock appears to be overvalued. The current stock price of A$2.80 is trading 656.8% above its estimated GF Value™ of A$0.37. GuruFocus considers Sigma Healthcare to be Significantly Overvalued.

Key valuation signals for ASX:SIG:

  • Cash Conversion Cycle: 53.27
  • GF Value™: A$0.37 vs. price of A$2.80 (656.8% above fair value)
  • GF Score™: 59/100 with 8 warning signs
  • Industry Position: 4.8% below the Medical Distribution median

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


Sigma Healthcare Business Description

Address 6 Albert Street, Preston, VIC, AUS, 3072
Sigma Healthcare is Australia's largest retail pharmacy franchisor, most notably owning the Chemist Warehouse brand, which it merged with in 2025. Sigma is also Australia's largest full-line wholesaler to franchised and independent pharmacies and distributes a broad range of pharmacy products, including prescription medicines, over-the-counter products, and front of store, or FOS, products, at low prices. The group also operates in New Zealand, Ireland, China, and Dubai, has a growing private label range, and offers third-party logistics services.
59GF 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$2.80
Price
A$0.37
GF Value