China Literature's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 69.42.
China Literature's Days Inventory for the
six
months ended in Dec. 2025 was 47.32.
China Literature's Days Payable for the
six
months ended in Dec. 2025 was 87.42.
Therefore, China Literature's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 29.32.
China Literature (OTCPK:CHLLF) 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.
China Literature Cash Conversion Cycle Related Terms
China Literature Cash Conversion Cycle Historical Data
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The historical data trend for China Literature'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.
CHLLF vs GOOGL, META, SPOT: Cash Conversion Cycle Comparison
For the Internet Content & Information subindustry, China Literature'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.
China Literature Cash Conversion Cycle vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where China Literature's Cash Conversion Cycle falls into.
China Literature 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.
China Literature's Cash Conversion Cycle for the fiscal year that ended in Dec. 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.
China Literature (CHLLF) has a Cash Conversion Cycle of 29.32 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on China Literature and its competitors.
Is China Literature's Cash Conversion Cycle too high?
China Literature's current Cash Conversion Cycle is 29.32. The Interactive Media industry median Cash Conversion Cycle is 18.31. China Literature's value of 29.32 is 60.1% above this industry median. Overall, China Literature has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Literature's Cash Conversion Cycle compare to GOOGL and META?
China Literature's Cash Conversion Cycle of 29.32 can be compared against companies in the Interactive Media industry. The industry median Cash Conversion Cycle is 18.31. China Literature's value of 29.32 is 60.1% 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 an Interactive Media company?
The median Cash Conversion Cycle among Interactive Media companies is 18.31, based on 548 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. China Literature's current Cash Conversion Cycle of 29.32 is 60.1% 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 China Literature and its competitors. For the Interactive Media industry, the median Cash Conversion Cycle is 18.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Cash Conversion Cycle is 29.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
Based on GuruFocus' analysis, China Literature (CHLLF) is currently considered Possible Value Trap. The stock's GF Value™ is $4.28, compared to a current price of $2.55 — trading 40.4% below its estimated fair value. The current Cash Conversion Cycle is 29.32 and 60.1% above the Interactive Media industry median of 18.31. China Literature's overall GF Score™ is 71/100 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 China Literature (CHLLF), the current Cash Conversion Cycle is 29.32 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 China Literature (CHLLF) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of $2.55 is trading 40.4% below its estimated GF Value™ of $4.28.
GuruFocus considers China Literature to be Possible Value Trap.
Key valuation signals for CHLLF:
Cash Conversion Cycle: 29.32
GF Value™: $4.28 vs. price of $2.55 (40.4% below fair value)
Industry Position: 60.1% above the Interactive Media median
No single metric tells the full story. See the CHLLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
71GF Score
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