Hikari Tsushin's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 189.58.
Hikari Tsushin's Days Inventory for the
three
months ended in Mar. 2026 was 1.89.
Hikari Tsushin's Days Payable for the
three
months ended in Mar. 2026 was 236.4.
Therefore, Hikari Tsushin's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was -44.93.
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.
Hikari Tsushin Cash Conversion Cycle Related Terms
Hikari Tsushin Cash Conversion Cycle Historical Data
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The historical data trend for Hikari Tsushin'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:HIK vs HON, MMM: Cash Conversion Cycle Comparison
For the Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin Cash Conversion Cycle vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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.
Hikari Tsushin's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 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.
Hikari Tsushin (FRA:HIK) has a Cash Conversion Cycle of -44.93 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Hikari Tsushin and its competitors.
Is Hikari Tsushin's Cash Conversion Cycle too high?
Hikari Tsushin's current Cash Conversion Cycle is -44.93. Overall, Hikari Tsushin has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Cash Conversion Cycle compare to HON and MMM?
Hikari Tsushin's Cash Conversion Cycle of -44.93 can be compared against companies in the Conglomerates industry. The industry median Cash Conversion Cycle is 70.99. 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 Conglomerates company?
The median Cash Conversion Cycle among Conglomerates companies is 70.99, based on 549 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. 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median Cash Conversion Cycle is 70.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Cash Conversion Cycle is -44.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Fairly Valued. The stock's GF Value™ is €218.57, compared to a current price of €199.00 — trading 9% below its estimated fair value. The current Cash Conversion Cycle is -44.93. Hikari Tsushin's overall GF Score™ is 80/100 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 Hikari Tsushin (FRA:HIK), the current Cash Conversion Cycle is -44.93 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €199.00 is trading 9% below its estimated GF Value™ of €218.57.
GuruFocus considers Hikari Tsushin to be Fairly Valued.
Key valuation signals for FRA:HIK:
Cash Conversion Cycle: -44.93
GF Value™: €218.57 vs. price of €199.00 (9% below fair value)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
80GF 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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