Kunming Dianchi Water Treatment Co (FRA:1KD) 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.
Kunming Dianchi Water Treatment Co Cash Conversion Cycle Related Terms
Kunming Dianchi Water Treatment Co 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.
Kunming Dianchi Water Treatment Co Cash Conversion Cycle Chart
FRA:1KD vs AWK, WTRG, AWR: Cash Conversion Cycle Comparison
For the Utilities - Regulated Water subindustry, Kunming Dianchi Water Treatment Co'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.
Kunming Dianchi Water Treatment Co Cash Conversion Cycle vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Kunming Dianchi Water Treatment Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Kunming Dianchi Water Treatment Co's Cash Conversion Cycle falls into.
Kunming Dianchi Water Treatment Co 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.
* 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.
Kunming Dianchi Water Treatment Co (FRA:1KD) has a Cash Conversion Cycle of 810.22 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Kunming Dianchi Water Treatment Co and its competitors.
Is Kunming Dianchi Water Treatment Co's Cash Conversion Cycle too high?
Kunming Dianchi Water Treatment Co's current Cash Conversion Cycle is 810.22. The Utilities - Regulated industry median Cash Conversion Cycle is 13.93. Kunming Dianchi Water Treatment Co's value of 810.22 is 5716.4% above this industry median. Overall, Kunming Dianchi Water Treatment Co has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Kunming Dianchi Water Treatment Co's Cash Conversion Cycle compare to AWK and WTRG?
Kunming Dianchi Water Treatment Co's Cash Conversion Cycle of 810.22 can be compared against companies in the Utilities - Regulated industry. The industry median Cash Conversion Cycle is 13.93. Kunming Dianchi Water Treatment Co's value of 810.22 is 5716.4% 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 Utilities - Regulated company?
The median Cash Conversion Cycle among Utilities - Regulated companies is 13.93, based on 499 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. Kunming Dianchi Water Treatment Co's current Cash Conversion Cycle of 810.22 is 5716.4% 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 Kunming Dianchi Water Treatment Co and its competitors. For the Utilities - Regulated 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. Kunming Dianchi Water Treatment Co's current Cash Conversion Cycle is 810.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kunming Dianchi Water Treatment Co stock overvalued right now?
Kunming Dianchi Water Treatment Co (FRA:1KD) has a current Cash Conversion Cycle of 810.22. The stock's GF Value™ is €0.05, compared to a current price of €0.04 — trading 13% below its estimated fair value. The current Cash Conversion Cycle is 810.22 and 5716.4% above the Utilities - Regulated industry median of 13.93. Kunming Dianchi Water Treatment Co's overall GF Score™ is 48/100 with 5 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 Kunming Dianchi Water Treatment Co (FRA:1KD), the current Cash Conversion Cycle is 810.22 as of Dec. 2025. 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 Kunming Dianchi Water Treatment Co (FRA:1KD) Overvalued in 2026?
Based on GuruFocus' analysis, Kunming Dianchi Water Treatment Co stock appears to be undervalued.
The current stock price of €0.04 is trading 13% below its estimated GF Value™ of €0.05.
Key valuation signals for FRA:1KD:
Cash Conversion Cycle: 810.22
GF Value™: €0.05 vs. price of €0.04 (13% below fair value)
Industry Position: 5716.4% above the Utilities - Regulated median
No single metric tells the full story. See the FRA:1KD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kunming Dianchi Water Treatment Co Business Description
Kunming Dianchi Water Treatment Co Ltd, and its subsidiaries, are principally engaged in the development, design, construction, operation and maintenance of water supply and wastewater treatment facilities in the PRC. The company's reportable segments are as follows: i) Wastewater treatment; ii) Water supply; and iii) Others, including management services, transportation services, construction services, thermal production and treasury functions. The majority of the company's revenue is derived from the Wastewater treatment segment. Geographically, the company's operations are principally located in the PRC.
48GF Score
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