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.
PT Sinar Mas Agro Resources & Technology Tbk Cash Conversion Cycle Related Terms
PT Sinar Mas Agro Resources & Technology Tbk 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.
FRA:078 vs ADM, BG, TSN: Cash Conversion Cycle Comparison
For the Farm Products subindustry, PT Sinar Mas Agro Resources & Technology Tbk'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.
PT Sinar Mas Agro Resources & Technology Tbk Cash Conversion Cycle vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, PT Sinar Mas Agro Resources & Technology Tbk's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where PT Sinar Mas Agro Resources & Technology Tbk's Cash Conversion Cycle falls into.
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.
* 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.
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a Cash Conversion Cycle of 64.76 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on PT Sinar Mas Agro Resources & Technology Tbk and its competitors.
Is PT Sinar Mas Agro Resources & Technology Tbk's Cash Conversion Cycle too high?
PT Sinar Mas Agro Resources & Technology Tbk's current Cash Conversion Cycle is 64.76. The Consumer Packaged Goods industry median Cash Conversion Cycle is 75.44. PT Sinar Mas Agro Resources & Technology Tbk's value of 64.76 is 14.2% below this industry median. Overall, PT Sinar Mas Agro Resources & Technology Tbk has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does PT Sinar Mas Agro Resources & Technology Tbk's Cash Conversion Cycle compare to ADM and BG?
PT Sinar Mas Agro Resources & Technology Tbk's Cash Conversion Cycle of 64.76 can be compared against companies in the Consumer Packaged Goods industry. The industry median Cash Conversion Cycle is 75.44. PT Sinar Mas Agro Resources & Technology Tbk's value of 64.76 is 14.2% below 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 Consumer Packaged Goods company?
The median Cash Conversion Cycle among Consumer Packaged Goods companies is 75.44, based on 1,944 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. PT Sinar Mas Agro Resources & Technology Tbk's current Cash Conversion Cycle of 64.76 is 14.2% below 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 PT Sinar Mas Agro Resources & Technology Tbk and its competitors. For the Consumer Packaged Goods industry, the median Cash Conversion Cycle is 75.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Sinar Mas Agro Resources & Technology Tbk's current Cash Conversion Cycle is 64.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Sinar Mas Agro Resources & Technology Tbk stock overvalued right now?
PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) has a current Cash Conversion Cycle of 64.76. The stock's GF Value™ is €0.20, compared to a current price of €0.19 — trading 6.1% below its estimated fair value. The current Cash Conversion Cycle is 64.76 and 14.2% below the Consumer Packaged Goods industry median of 75.44. PT Sinar Mas Agro Resources & Technology Tbk's overall GF Score™ is 84/100 with 3 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 PT Sinar Mas Agro Resources & Technology Tbk (FRA:078), the current Cash Conversion Cycle is 64.76 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 PT Sinar Mas Agro Resources & Technology Tbk (FRA:078) Overvalued in 2026?
Based on GuruFocus' analysis, PT Sinar Mas Agro Resources & Technology Tbk stock appears to be undervalued.
The current stock price of €0.19 is trading 6.1% below its estimated GF Value™ of €0.20.
Key valuation signals for FRA:078:
Cash Conversion Cycle: 64.76
GF Value™: €0.20 vs. price of €0.19 (6.1% below fair value)
Industry Position: 14.2% below the Consumer Packaged Goods median
No single metric tells the full story. See the FRA:078 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Sinar Mas Agro Resources & Technology Tbk Business Description
PT Sinar Mas Agro Resources & Technology Tbk is involved in the business of cultivating and harvesting oil palm trees, extracting fresh fruit bunches into crude palm oil and palm kernel, processing it into value-added products such as cooking oil, margarine, shortening, oleochemicals, and biodiesel. The firm's products include cooking oil, fat, margarine, crude palm oil, palm kernel, cocoa butter substitute, etc. Its scope of activities comprises plantation development, agriculture, trading, refining of plantation products, management services, and research related to the business.
84GF Score
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