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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.
Aarey Drugs & Pharmaceuticals Cash Conversion Cycle Related Terms
Aarey Drugs & Pharmaceuticals 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.
BOM:524412 vs ZTS, UTHR: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Aarey Drugs & Pharmaceuticals'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.
Aarey Drugs & Pharmaceuticals Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Aarey Drugs & Pharmaceuticals's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Aarey Drugs & Pharmaceuticals'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.
Aarey Drugs & Pharmaceuticals (BOM:524412) has a Cash Conversion Cycle of 42.07 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Aarey Drugs & Pharmaceuticals and its competitors.
Is Aarey Drugs & Pharmaceuticals' Cash Conversion Cycle too high?
Aarey Drugs & Pharmaceuticals' current Cash Conversion Cycle is 42.07. The Drug Manufacturers industry median Cash Conversion Cycle is 146.14. Aarey Drugs & Pharmaceuticals' value of 42.07 is 71.2% below this industry median. Overall, Aarey Drugs & Pharmaceuticals has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Aarey Drugs & Pharmaceuticals' Cash Conversion Cycle compare to ZTS and UTHR?
Aarey Drugs & Pharmaceuticals' Cash Conversion Cycle of 42.07 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 146.14. Aarey Drugs & Pharmaceuticals' value of 42.07 is 71.2% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 146.14, based on 954 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. Aarey Drugs & Pharmaceuticals's current Cash Conversion Cycle of 42.07 is 71.2% 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 Aarey Drugs & Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 146.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aarey Drugs & Pharmaceuticals's current Cash Conversion Cycle is 42.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aarey Drugs & Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals (BOM:524412) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹58.30, compared to a current price of ₹79.56 — trading 36.5% above its estimated fair value. The current Cash Conversion Cycle is 42.07 and 71.2% below the Drug Manufacturers industry median of 146.14. Aarey Drugs & Pharmaceuticals' overall GF Score™ is 61/100 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 Aarey Drugs & Pharmaceuticals (BOM:524412), the current Cash Conversion Cycle is 42.07 as of Mar. 2026. 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 Aarey Drugs & Pharmaceuticals (BOM:524412) Overvalued in 2026?
Based on GuruFocus' analysis, Aarey Drugs & Pharmaceuticals stock appears to be overvalued.
The current stock price of ₹79.56 is trading 36.5% above its estimated GF Value™ of ₹58.30.
GuruFocus considers Aarey Drugs & Pharmaceuticals to be Significantly Overvalued.
Key valuation signals for BOM:524412:
Cash Conversion Cycle: 42.07
GF Value™: ₹58.30 vs. price of ₹79.56 (36.5% above fair value)
Industry Position: 71.2% below the Drug Manufacturers median
No single metric tells the full story. See the BOM:524412 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aarey Drugs & Pharmaceuticals Business Description
Aarey Drugs & Pharmaceuticals Ltd is engaged in bulk drug manufacturing and offers products for industrial applications. The company manufactures active pharmaceutical ingredients, intermediates, and specialty chemicals. It is also involved in the trading of industrial solvents and chemicals. The products offered by the company include N-Methyl urea, Dimethyl urea, Mefenamic acid, Metformin, Doxaphylline, and BMD among others. The company principally carries out its business operations in India.
61GF Score
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