EO2's Days Sales Outstanding for the
six
months ended in Aug. 2025 was 43.74.
EO2's Days Inventory for the
six
months ended in Aug. 2025 was 104.91.
EO2's Days Payable for the
six
months ended in Aug. 2025 was 83.99.
Therefore, EO2's Cash Conversion Cycle (CCC) for the
six
months ended in Aug. 2025 was 64.66.
EO2 (FRA:EO4) 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.
EO2 Cash Conversion Cycle Related Terms
EO2 Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for EO2'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.
FRA:EO4 vs SSD, UFPI, BCC: Cash Conversion Cycle Comparison
For the Lumber & Wood Production subindustry, EO2'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.
EO2 Cash Conversion Cycle vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, EO2's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where EO2'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.
EO2's Cash Conversion Cycle for the fiscal year that ended in Feb. 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.
EO2 (FRA:EO4) has a Cash Conversion Cycle of 64.66 as of Aug. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on EO2 and its competitors.
Is EO2's Cash Conversion Cycle too high?
EO2's current Cash Conversion Cycle is 64.66. The Forest Products industry median Cash Conversion Cycle is 91.34. EO2's value of 64.66 is 29.2% below this industry median. Overall, EO2 has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does EO2's Cash Conversion Cycle compare to SSD and UFPI?
EO2's Cash Conversion Cycle of 64.66 can be compared against companies in the Forest Products industry. The industry median Cash Conversion Cycle is 91.34. EO2's value of 64.66 is 29.2% 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 Forest Products company?
The median Cash Conversion Cycle among Forest Products companies is 91.34, based on 283 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. EO2's current Cash Conversion Cycle of 64.66 is 29.2% 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 EO2 and its competitors. For the Forest Products industry, the median Cash Conversion Cycle is 91.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EO2's current Cash Conversion Cycle is 64.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EO2 stock overvalued right now?
EO2 (FRA:EO4) has a current Cash Conversion Cycle of 64.66. The stock's GF Value™ is €3.99, compared to a current price of €2.44 — trading 38.8% below its estimated fair value. The current Cash Conversion Cycle is 64.66 and 29.2% below the Forest Products industry median of 91.34. EO2's overall GF Score™ is 66/100 with 4 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 EO2 (FRA:EO4), the current Cash Conversion Cycle is 64.66 as of Aug. 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 EO2 (FRA:EO4) Overvalued in 2026?
Based on GuruFocus' analysis, EO2 stock appears to be undervalued.
The current stock price of €2.44 is trading 38.8% below its estimated GF Value™ of €3.99.
Key valuation signals for FRA:EO4:
Cash Conversion Cycle: 64.66
GF Value™: €3.99 vs. price of €2.44 (38.8% below fair value)
Industry Position: 29.2% below the Forest Products median
No single metric tells the full story. See the FRA:EO4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EO2 SA designs, produces, operates and distributes a range of wood heating products under the EO2 and PIKS brands, including bagged wood pellets, pallets and bulk.
66GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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