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Drilling Tools International's Days Sales Outstanding for the
three
months ended in Jun. 2026 was 100.46.
Drilling Tools International's Days Inventory for the
three
months ended in Jun. 2026 was 99.23.
Drilling Tools International's Days Payable for the
three
months ended in Jun. 2026 was 68.53.
Therefore, Drilling Tools International's Cash Conversion Cycle (CCC) for the
three
months ended in Jun. 2026 was 131.16.
Drilling Tools International (NAS:DTI) 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.
Drilling Tools International Cash Conversion Cycle Related Terms
Drilling Tools International 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.
Drilling Tools International Cash Conversion Cycle Chart
DTI vs LSE, DWSN, GEOS: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Drilling Tools International'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.
Drilling Tools International Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Drilling Tools International's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Drilling Tools International's Cash Conversion Cycle falls into.
Drilling Tools International 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.
Drilling Tools International'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.
Drilling Tools International (DTI) has a Cash Conversion Cycle of 131.16 as of Jun. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Drilling Tools International and its competitors.
Is Drilling Tools International's Cash Conversion Cycle too high?
Drilling Tools International's current Cash Conversion Cycle is 131.16. The Oil & Gas industry median Cash Conversion Cycle is 16.57. Drilling Tools International's value of 131.16 is 691.6% above this industry median. Overall, Drilling Tools International has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Drilling Tools International's Cash Conversion Cycle compare to LSE and DWSN?
Drilling Tools International's Cash Conversion Cycle of 131.16 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 16.57. Drilling Tools International's value of 131.16 is 691.6% 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 Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 16.57, based on 921 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. Drilling Tools International's current Cash Conversion Cycle of 131.16 is 691.6% 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 Drilling Tools International and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 16.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Drilling Tools International's current Cash Conversion Cycle is 131.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Drilling Tools International stock overvalued right now?
Based on GuruFocus' analysis, Drilling Tools International (DTI) is currently considered Fairly Valued. The stock's GF Value™ is $2.69, compared to a current price of $2.58 — trading 4.1% below its estimated fair value. The current Cash Conversion Cycle is 131.16 and 691.6% above the Oil & Gas industry median of 16.57. Drilling Tools International's overall GF Score™ is 63/100 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 Drilling Tools International (DTI), the current Cash Conversion Cycle is 131.16 as of Jun. 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 Drilling Tools International (DTI) Overvalued in 2026?
Based on GuruFocus' analysis, Drilling Tools International stock appears to be undervalued.
The current stock price of $2.58 is trading 4.1% below its estimated GF Value™ of $2.69.
GuruFocus considers Drilling Tools International to be Fairly Valued.
Key valuation signals for DTI:
Cash Conversion Cycle: 131.16
GF Value™: $2.69 vs. price of $2.58 (4.1% below fair value)
Industry Position: 691.6% above the Oil & Gas median
No single metric tells the full story. See the DTI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Drilling Tools International Corp is an oilfield services company that designs, engineers, and manufactures rental-focused tools used in onshore and offshore horizontal and directional drilling operations, as well as solutions across the well life cycle. It operates through two geographic segments: Western Hemisphere and Eastern Hemisphere. The Western Hemisphere, which generates the majority of revenue, provides downhole drilling tools and rental services for onshore and offshore operations across North America and Latin America, supported by service centers in the U.S. and Canada. The Eastern Hemisphere covers Europe, the Middle East, and Asia-Pacific, where the company offers drilling and well lifecycle solutions through international service centers across the EMEA and APAC regions.
63GF Score
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