Zip Co's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 834.64.
Zip Co's Days Inventory for the
six
months ended in Dec. 2025 was 0.
Zip Co's Days Payable for the
six
months ended in Dec. 2025 was 780.54.
Therefore, Zip Co's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 54.10.
Zip Co (ASX:ZIP) 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.
Zip Co Cash Conversion Cycle Related Terms
Zip Co Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Zip Co'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.
ASX:ZIP vs V, MA, AXP: Cash Conversion Cycle Comparison
For the Credit Services subindustry, Zip Co'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.
Zip Co Cash Conversion Cycle vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Zip Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Zip Co'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.
Zip Co'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.
Zip Co (ASX:ZIP) has a Cash Conversion Cycle of 54.10 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Zip Co and its competitors.
Is Zip Co's Cash Conversion Cycle too high?
Zip Co's current Cash Conversion Cycle is 54.10. The Credit Services industry median Cash Conversion Cycle is 1.48. Zip Co's value of 54.10 is 3567.8% above this industry median. Overall, Zip Co has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zip Co's Cash Conversion Cycle compare to V and MA?
Zip Co's Cash Conversion Cycle of 54.10 can be compared against companies in the Credit Services industry. The industry median Cash Conversion Cycle is 1.48. Zip Co's value of 54.10 is 3567.8% 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 Credit Services company?
The median Cash Conversion Cycle among Credit Services companies is 1.48, based on 376 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. Zip Co's current Cash Conversion Cycle of 54.10 is 3567.8% 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 Zip Co and its competitors. For the Credit Services industry, the median Cash Conversion Cycle is 1.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zip Co's current Cash Conversion Cycle is 54.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zip Co stock overvalued right now?
Based on GuruFocus' analysis, Zip Co (ASX:ZIP) is currently considered Significantly Overvalued. The stock's GF Value™ is A$2.07, compared to a current price of A$3.24 — trading 56.5% above its estimated fair value. The current Cash Conversion Cycle is 54.10 and 3567.8% above the Credit Services industry median of 1.48. Zip Co's overall GF Score™ is 62/100 with 7 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 Zip Co (ASX:ZIP), the current Cash Conversion Cycle is 54.10 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 Zip Co (ASX:ZIP) Overvalued in 2026?
Based on GuruFocus' analysis, Zip Co stock appears to be overvalued.
The current stock price of A$3.24 is trading 56.5% above its estimated GF Value™ of A$2.07.
GuruFocus considers Zip Co to be Significantly Overvalued.
Key valuation signals for ASX:ZIP:
Cash Conversion Cycle: 54.10
GF Value™: A$2.07 vs. price of A$3.24 (56.5% above fair value)
Industry Position: 3567.8% above the Credit Services median
No single metric tells the full story. See the ASX:ZIP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zip is a credit provider operating two segments: Australia and New Zealand, and the US. Founded in Australia in 2013, it has over 6 million active customers and partners with over 85,000 merchants. In Australia, Zip positions itself as a credit card alternative, with several revolving credit products. Customers can carry the balance over time with a monthly fee and set their own repayment schedule. The US and New Zealand offering is a far more vanilla BNPL offering: Pay-in-4 in New Zealand and Pay-in-Z in the US, where customers pay back in fixed instalments. The US segment is built on the 2020 acquisition of QuadPay and has recently become Zip's largest and fastest-growing segment.
62GF Score
Get the complete analysis for ASX:ZIP
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:ZIP has been successfully added to your 
