Active Fine Chemicals's Days Sales Outstanding for the
three
months ended in Mar. 2023 was 592.13.
Active Fine Chemicals's Days Inventory for the
three
months ended in Mar. 2023 was 693.58.
Active Fine Chemicals's Days Payable for the
three
months ended in Mar. 2023 was 0.
Therefore, Active Fine Chemicals's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2023 was 1,285.71.
Active Fine Chemicals (DHA:ACTIVEFINE) 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.
Active Fine Chemicals Cash Conversion Cycle Related Terms
Active Fine Chemicals Cash Conversion Cycle Historical Data
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The historical data trend for Active Fine Chemicals'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.
DHA:ACTIVEFINE vs DOW, CE: Cash Conversion Cycle Comparison
For the Chemicals subindustry, Active Fine Chemicals'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.
Active Fine Chemicals Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Active Fine Chemicals's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Active Fine Chemicals's Cash Conversion Cycle falls into.
Active Fine Chemicals 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.
Active Fine Chemicals's Cash Conversion Cycle for the fiscal year that ended in Jun. 2022 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.
What does a Cash Conversion Cycle of 1,285.71 mean?
Active Fine Chemicals (DHA:ACTIVEFINE) has a Cash Conversion Cycle of 1,285.71 as of Mar. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Active Fine Chemicals and its competitors.
Is Active Fine Chemicals' Cash Conversion Cycle too high?
Active Fine Chemicals' current Cash Conversion Cycle is 1,285.71. The Chemicals industry median Cash Conversion Cycle is 89.14. Active Fine Chemicals' value of 1,285.71 is 1342.3% above this industry median. Overall, Active Fine Chemicals has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Active Fine Chemicals' Cash Conversion Cycle compare to DOW and CE?
Active Fine Chemicals' Cash Conversion Cycle of 1,285.71 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.14. Active Fine Chemicals' value of 1,285.71 is 1342.3% 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 Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.14, based on 1,586 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. Active Fine Chemicals's current Cash Conversion Cycle of 1,285.71 is 1342.3% 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 Active Fine Chemicals and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Active Fine Chemicals's current Cash Conversion Cycle is 1,285.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Active Fine Chemicals stock overvalued right now?
Active Fine Chemicals (DHA:ACTIVEFINE) has a current Cash Conversion Cycle of 1,285.71. The current Cash Conversion Cycle is 1,285.71 and 1342.3% above the Chemicals industry median of 89.14. Active Fine Chemicals' overall GF Score™ is 10/100. 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 Active Fine Chemicals (DHA:ACTIVEFINE), the current Cash Conversion Cycle is 1,285.71 as of Mar. 2023. 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.
Active Fine Chemicals Ltd is a Bangladesh based chemical company engaged in manufacturing active pharmaceutical ingredients and laboratory reagents. Its product offerings include azithromycin dihydrate, erythromycin ethyl succinate, erythromycin stearate, pantoprazole sodium sesquihydrate, venlafaxine HCL, sitagliptin phosphate monohydrate, and pregabalin. While it also manufactures laboratory reagents including HPLC Grade solvents, solvents, and powder reagents.
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