China Evergrande Group's Days Sales Outstanding for the
six
months ended in Jun. 2023 was 327.52.
China Evergrande Group's Days Inventory for the
six
months ended in Jun. 2023 was 1737.69.
China Evergrande Group's Days Payable for the
six
months ended in Jun. 2023 was 1257.54.
Therefore, China Evergrande Group's Cash Conversion Cycle (CCC) for the
six
months ended in Jun. 2023 was 807.67.
China Evergrande Group (OTCPK:EGRNF) 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 Evergrande Group Cash Conversion Cycle Related Terms
China Evergrande Group Cash Conversion Cycle Historical Data
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The historical data trend for China Evergrande Group'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.
China Evergrande Group Cash Conversion Cycle Chart
China Evergrande Group Cash Conversion Cycle Competitor Comparison
For the Real Estate - Development subindustry, China Evergrande Group'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 Evergrande Group Cash Conversion Cycle vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where China Evergrande Group's Cash Conversion Cycle falls into.
China Evergrande Group 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 Evergrande Group's Cash Conversion Cycle for the fiscal year that ended in Dec. 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.
China Evergrande Group (EGRNF) has a Cash Conversion Cycle of 807.67 as of Jun. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on China Evergrande Group and its competitors.
Is China Evergrande Group's Cash Conversion Cycle too high?
China Evergrande Group's current Cash Conversion Cycle is 807.67. The Real Estate industry median Cash Conversion Cycle is 320.77. China Evergrande Group's value of 807.67 is 151.8% above this industry median. Overall, China Evergrande Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China Evergrande Group's Cash Conversion Cycle compare to competitors?
China Evergrande Group's Cash Conversion Cycle of 807.67 can be compared against companies in the Real Estate industry. The industry median Cash Conversion Cycle is 320.77. China Evergrande Group's value of 807.67 is 151.8% 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 Real Estate company?
The median Cash Conversion Cycle among Real Estate companies is 320.77, based on 1,735 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 Evergrande Group's current Cash Conversion Cycle of 807.67 is 151.8% 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 Evergrande Group and its competitors. For the Real Estate industry, the median Cash Conversion Cycle is 320.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Evergrande Group's current Cash Conversion Cycle is 807.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Evergrande Group stock overvalued right now?
China Evergrande Group (EGRNF) has a current Cash Conversion Cycle of 807.67. The current Cash Conversion Cycle is 807.67 and 151.8% above the Real Estate industry median of 320.77. China Evergrande Group's overall GF Score™ is 12/100. 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 Evergrande Group (EGRNF), the current Cash Conversion Cycle is 807.67 as of Jun. 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.
China Evergrande Group is engaged in the property development, property investment, property management, new energy vehicle business, cultural tourism business and health industry business principally in the People's Republic of China. The company is organized into four business segments: property development, property investment, property management and other businesses. Other businesses mainly include new energy vehicle business, cultural tourism business, health industry business and investment business.
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