Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) 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.
Profarma Distribuidora De Produtos Farmaceuticos Cash Conversion Cycle Related Terms
Profarma Distribuidora De Produtos Farmaceuticos 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.
Profarma Distribuidora De Produtos Farmaceuticos Cash Conversion Cycle Chart
Profarma Distribuidora De Produtos Farmaceuticos Annual Data
BSP:PFRM3 vs MCK, CAH, COR: Cash Conversion Cycle Comparison
For the Medical Distribution subindustry, Profarma Distribuidora De Produtos Farmaceuticos'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.
Profarma Distribuidora De Produtos Farmaceuticos Cash Conversion Cycle vs Medical Distribution Industry
Profarma Distribuidora De Produtos Farmaceuticos 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.
Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) has a Cash Conversion Cycle of 29.19 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Profarma Distribuidora De Produtos Farmaceuticos and its competitors.
Is Profarma Distribuidora De Produtos Farmaceuticos' Cash Conversion Cycle too high?
Profarma Distribuidora De Produtos Farmaceuticos' current Cash Conversion Cycle is 29.19. The Medical Distribution industry median Cash Conversion Cycle is 55.95. Profarma Distribuidora De Produtos Farmaceuticos' value of 29.19 is 47.8% below this industry median. Overall, Profarma Distribuidora De Produtos Farmaceuticos has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Profarma Distribuidora De Produtos Farmaceuticos' Cash Conversion Cycle compare to MCK and CAH?
Profarma Distribuidora De Produtos Farmaceuticos' Cash Conversion Cycle of 29.19 can be compared against companies in the Medical Distribution industry. The industry median Cash Conversion Cycle is 55.95. Profarma Distribuidora De Produtos Farmaceuticos' value of 29.19 is 47.8% 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. Profarma Distribuidora De Produtos Farmaceuticos's current Cash Conversion Cycle of 29.19 is 47.8% 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 Profarma Distribuidora De Produtos Farmaceuticos 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. Profarma Distribuidora De Produtos Farmaceuticos's current Cash Conversion Cycle is 29.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Profarma Distribuidora De Produtos Farmaceuticos stock overvalued right now?
Based on GuruFocus' analysis, Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$8.03, compared to a current price of R$6.72 — trading 16.3% below its estimated fair value. The current Cash Conversion Cycle is 29.19 and 47.8% below the Medical Distribution industry median of 55.95. Profarma Distribuidora De Produtos Farmaceuticos' overall GF Score™ is 75/100 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 Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3), the current Cash Conversion Cycle is 29.19 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 Profarma Distribuidora De Produtos Farmaceuticos (BSP:PFRM3) Overvalued in 2026?
Based on GuruFocus' analysis, Profarma Distribuidora De Produtos Farmaceuticos stock appears to be undervalued.
The current stock price of R$6.72 is trading 16.3% below its estimated GF Value™ of R$8.03.
GuruFocus considers Profarma Distribuidora De Produtos Farmaceuticos to be Modestly Undervalued.
Key valuation signals for BSP:PFRM3:
Cash Conversion Cycle: 29.19
GF Value™: R$8.03 vs. price of R$6.72 (16.3% below fair value)
Industry Position: 47.8% below the Medical Distribution median
No single metric tells the full story. See the BSP:PFRM3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Profarma Distribuidora De Produtos Farmaceuticos Business Description
Profarma Distribuidora De Produtos Farmaceuticos SA is a Brazil-based company. It is engaged in wholesale and distribution of pharmaceuticals, cosmetics and similar products, and toiletries. Profarma also holds interests in other companies, regardless of their business sector. The company through its logistics department distributes products in the South, Southeast, Northeast and Center-West regions of Brazil. The firm operates in the pharmaceutical distribution, hospital and specialty, retail segments.
75GF Score
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