Ambipar Participacoes e Empreendimentos (BSP:AMBP3) 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.
Ambipar Participacoes e Empreendimentos Cash Conversion Cycle Related Terms
Ambipar Participacoes e Empreendimentos 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.
Ambipar Participacoes e Empreendimentos Cash Conversion Cycle Chart
Ambipar Participacoes e Empreendimentos Annual Data
BSP:AMBP3 vs WM, RSG, WCN: Cash Conversion Cycle Comparison
For the Waste Management subindustry, Ambipar Participacoes e Empreendimentos'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.
Ambipar Participacoes e Empreendimentos Cash Conversion Cycle vs Waste Management Industry
For the Waste Management industry and Industrials sector, Ambipar Participacoes e Empreendimentos's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Ambipar Participacoes e Empreendimentos's Cash Conversion Cycle falls into.
Ambipar Participacoes e Empreendimentos 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.
* 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.
Ambipar Participacoes e Empreendimentos (BSP:AMBP3) has a Cash Conversion Cycle of 66.90 as of Jun. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Ambipar Participacoes e Empreendimentos and its competitors.
Is Ambipar Participacoes e Empreendimentos' Cash Conversion Cycle too high?
Ambipar Participacoes e Empreendimentos' current Cash Conversion Cycle is 66.90. The Waste Management industry median Cash Conversion Cycle is 50.09. Ambipar Participacoes e Empreendimentos' value of 66.90 is 33.6% above this industry median. Overall, Ambipar Participacoes e Empreendimentos has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ambipar Participacoes e Empreendimentos' Cash Conversion Cycle compare to WM and RSG?
Ambipar Participacoes e Empreendimentos' Cash Conversion Cycle of 66.90 can be compared against companies in the Waste Management industry. The industry median Cash Conversion Cycle is 50.09. Ambipar Participacoes e Empreendimentos' value of 66.90 is 33.6% 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 Waste Management company?
The median Cash Conversion Cycle among Waste Management companies is 50.09, based on 240 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. Ambipar Participacoes e Empreendimentos's current Cash Conversion Cycle of 66.90 is 33.6% 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 Ambipar Participacoes e Empreendimentos and its competitors. For the Waste Management industry, the median Cash Conversion Cycle is 50.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ambipar Participacoes e Empreendimentos's current Cash Conversion Cycle is 66.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ambipar Participacoes e Empreendimentos stock overvalued right now?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos (BSP:AMBP3) is currently considered Possible Value Trap. The stock's GF Value™ is R$17.66, compared to a current price of R$0.17 — trading 99% below its estimated fair value. The current Cash Conversion Cycle is 66.90 and 33.6% above the Waste Management industry median of 50.09. Ambipar Participacoes e Empreendimentos' overall GF Score™ is 74/100 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3), the current Cash Conversion Cycle is 66.90 as of Jun. 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 Ambipar Participacoes e Empreendimentos (BSP:AMBP3) Overvalued in 2026?
Based on GuruFocus' analysis, Ambipar Participacoes e Empreendimentos stock appears to be undervalued.
The current stock price of R$0.17 is trading 99% below its estimated GF Value™ of R$17.66.
GuruFocus considers Ambipar Participacoes e Empreendimentos to be Possible Value Trap.
Key valuation signals for BSP:AMBP3:
Cash Conversion Cycle: 66.90
GF Value™: R$17.66 vs. price of R$0.17 (99% below fair value)
Industry Position: 33.6% above the Waste Management median
No single metric tells the full story. See the BSP:AMBP3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ambipar Participacoes e Empreendimentos Business Description
Ambipar Participacoes e Empreendimentos SA is engaged in providing environmental services to several private clients in Latin America. Through its Environment segment, the company provides complete solutions in waste management and recovery, with the support of a center for research, development, and innovation. Its response segment provides prevention, training, and emergency assistance to accidents with chemicals and pollutants and firefighting.
74GF Score
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