InterContinental Hotels Group (FRA:IC1B) 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.
InterContinental Hotels Group Cash Conversion Cycle Related Terms
InterContinental Hotels Group 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.
InterContinental Hotels Group Cash Conversion Cycle Chart
FRA:IC1B vs MAR, HLT, H: Cash Conversion Cycle Comparison
For the Lodging subindustry, InterContinental Hotels 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.
InterContinental Hotels Group Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where InterContinental Hotels Group's Cash Conversion Cycle falls into.
InterContinental Hotels 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.
* 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.
InterContinental Hotels Group (FRA:IC1B) has a Cash Conversion Cycle of 12.81 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on InterContinental Hotels Group and its competitors.
Is InterContinental Hotels Group's Cash Conversion Cycle too high?
InterContinental Hotels Group's current Cash Conversion Cycle is 12.81. The Travel & Leisure industry median Cash Conversion Cycle is 10.28. InterContinental Hotels Group's value of 12.81 is 24.7% above this industry median. Overall, InterContinental Hotels Group has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does InterContinental Hotels Group's Cash Conversion Cycle compare to MAR and HLT?
InterContinental Hotels Group's Cash Conversion Cycle of 12.81 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.28. InterContinental Hotels Group's value of 12.81 is 24.7% 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 Travel & Leisure company?
The median Cash Conversion Cycle among Travel & Leisure companies is 10.28, based on 836 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. InterContinental Hotels Group's current Cash Conversion Cycle of 12.81 is 24.7% 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 InterContinental Hotels Group and its competitors. For the Travel & Leisure industry, the median Cash Conversion Cycle is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. InterContinental Hotels Group's current Cash Conversion Cycle is 12.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is InterContinental Hotels Group stock overvalued right now?
Based on GuruFocus' analysis, InterContinental Hotels Group (FRA:IC1B) is currently considered Modestly Overvalued. The stock's GF Value™ is €116.31, compared to a current price of €145.00 — trading 24.7% above its estimated fair value. The current Cash Conversion Cycle is 12.81 and 24.7% above the Travel & Leisure industry median of 10.28. InterContinental Hotels Group's overall GF Score™ is 89/100 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 InterContinental Hotels Group (FRA:IC1B), the current Cash Conversion Cycle is 12.81 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 InterContinental Hotels Group (FRA:IC1B) Overvalued in 2026?
Based on GuruFocus' analysis, InterContinental Hotels Group stock appears to be overvalued.
The current stock price of €145.00 is trading 24.7% above its estimated GF Value™ of €116.31.
GuruFocus considers InterContinental Hotels Group to be Modestly Overvalued.
Key valuation signals for FRA:IC1B:
Cash Conversion Cycle: 12.81
GF Value™: €116.31 vs. price of €145.00 (24.7% above fair value)
Industry Position: 24.7% above the Travel & Leisure median
No single metric tells the full story. See the FRA:IC1B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
InterContinental Hotels Group Business Description
InterContinental Hotels Group operates 1 million rooms across 20 brands addressing the midscale through luxury segments, as of Dec. 31, 2025. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in 2017 and closed on a 51% stake in Regent Hotels in 2018. It acquired Six Senses in 2019 and launched another midscale brand, Garner, in 2023, followed by a premium conversion brand, Noted Collections, in 2026. Managed and franchised represent 99% of total rooms. As of Dec. 31, 2025, the Americas represented 52% of total rooms, with Greater China accounting for 20% and Europe, Asia, the Middle East, and Africa making up 28%.
89GF Score
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