Canadian Pacific Kansas City's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 51.95.
Canadian Pacific Kansas City's Days Inventory for the
three
months ended in Mar. 2026 was 19.3.
Canadian Pacific Kansas City's Days Payable for the
three
months ended in Mar. 2026 was 25.34.
Therefore, Canadian Pacific Kansas City's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 45.91.
Canadian Pacific Kansas City (NYSE:CP) 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.
Canadian Pacific Kansas City Cash Conversion Cycle Related Terms
Canadian Pacific Kansas City 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.
Canadian Pacific Kansas City Cash Conversion Cycle Chart
CP vs UNP, CSX, NSC: Cash Conversion Cycle Comparison
For the Railroads subindustry, Canadian Pacific Kansas City'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.
Canadian Pacific Kansas City Cash Conversion Cycle vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Cash Conversion Cycle falls into.
Canadian Pacific Kansas City 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.
Canadian Pacific Kansas City'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.
Canadian Pacific Kansas City (CP) has a Cash Conversion Cycle of 45.91 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Canadian Pacific Kansas City and its competitors.
Is Canadian Pacific Kansas City's Cash Conversion Cycle too high?
Canadian Pacific Kansas City's current Cash Conversion Cycle is 45.91. The Transportation industry median Cash Conversion Cycle is 20.26. Canadian Pacific Kansas City's value of 45.91 is 126.7% above this industry median. Overall, Canadian Pacific Kansas City has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Pacific Kansas City's Cash Conversion Cycle compare to UNP and CSX?
Canadian Pacific Kansas City's Cash Conversion Cycle of 45.91 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. Canadian Pacific Kansas City's value of 45.91 is 126.7% 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,008 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. Canadian Pacific Kansas City's current Cash Conversion Cycle of 45.91 is 126.7% 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 Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Cash Conversion Cycle is 45.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Pacific Kansas City stock overvalued right now?
Based on GuruFocus' analysis, Canadian Pacific Kansas City (CP) is currently considered Fairly Valued. The stock's GF Value™ is $87.02, compared to a current price of $87.43 — trading 0.5% above its estimated fair value. The current Cash Conversion Cycle is 45.91 and 126.7% above the Transportation industry median of 20.26. Canadian Pacific Kansas City's overall GF Score™ is 80/100 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 Canadian Pacific Kansas City (CP), the current Cash Conversion Cycle is 45.91 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 Canadian Pacific Kansas City (CP) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Pacific Kansas City stock appears to be overvalued.
The current stock price of $87.43 is trading 0.5% above its estimated GF Value™ of $87.02.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
Cash Conversion Cycle: 45.91
GF Value™: $87.02 vs. price of $87.43 (0.5% above fair value)
Industry Position: 126.7% above the Transportation median
No single metric tells the full story. See the CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CPKC operates new single-linehaul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross-border and intra-Mexico freight via operating concessions on more than 3,000 miles of rail in Mexico. CPKC hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
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