China Rare Earth Holdings's Days Sales Outstanding for the
six
months ended in Dec. 2024 was 205.73.
China Rare Earth Holdings's Days Inventory for the
six
months ended in Dec. 2024 was 100.33.
China Rare Earth Holdings's Days Payable for the
six
months ended in Dec. 2024 was 27.62.
Therefore, China Rare Earth Holdings's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2024 was 278.44.
China Rare Earth Holdings (OTCPK:CREQF) 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 Rare Earth Holdings Cash Conversion Cycle Related Terms
China Rare Earth Holdings 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.
China Rare Earth Holdings Cash Conversion Cycle Chart
CREQF vs LZM, GRO, USGO: Cash Conversion Cycle Comparison
For the Other Industrial Metals & Mining subindustry, China Rare Earth Holdings'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 Rare Earth Holdings Cash Conversion Cycle vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, China Rare Earth Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where China Rare Earth Holdings's Cash Conversion Cycle falls into.
China Rare Earth Holdings 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 Rare Earth Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2024 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 Rare Earth Holdings (CREQF) has a Cash Conversion Cycle of 278.44 as of Dec. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on China Rare Earth Holdings and its competitors.
Is China Rare Earth Holdings' Cash Conversion Cycle too high?
China Rare Earth Holdings' current Cash Conversion Cycle is 278.44. The Metals & Mining industry median Cash Conversion Cycle is 13.93. China Rare Earth Holdings' value of 278.44 is 1898.9% above this industry median. Overall, China Rare Earth Holdings has a GF Score™ of 47/100, reflecting its overall financial health beyond just this single metric.
How does China Rare Earth Holdings' Cash Conversion Cycle compare to LZM and GRO?
China Rare Earth Holdings' Cash Conversion Cycle of 278.44 can be compared against companies in the Metals & Mining industry. The industry median Cash Conversion Cycle is 13.93. China Rare Earth Holdings' value of 278.44 is 1898.9% 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 Metals & Mining company?
The median Cash Conversion Cycle among Metals & Mining companies is 13.93, based on 1,165 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 Rare Earth Holdings's current Cash Conversion Cycle of 278.44 is 1898.9% 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 Rare Earth Holdings and its competitors. For the Metals & Mining industry, the median Cash Conversion Cycle is 13.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Rare Earth Holdings's current Cash Conversion Cycle is 278.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Rare Earth Holdings stock overvalued right now?
China Rare Earth Holdings (CREQF) has a current Cash Conversion Cycle of 278.44. The current Cash Conversion Cycle is 278.44 and 1898.9% above the Metals & Mining industry median of 13.93. China Rare Earth Holdings' overall GF Score™ is 47/100. 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 Rare Earth Holdings (CREQF), the current Cash Conversion Cycle is 278.44 as of Dec. 2024. 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.
China Rare Earth Holdings Ltd is an investment holding company. It operates in two segments: Rare earth and Refractory. The Rare earth segment includes manufacturing and sales of rare earth products. The Refractory segment includes the manufacturing and sales of refractory products. The majority of its revenue comes from Rare Earth Segment. Its geographical segments are China, Japan, Europe, and Others, of which China accounts for the vast majority of its revenue.
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