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.
Newron Pharmaceuticals SpA Cash Conversion Cycle Related Terms
Newron Pharmaceuticals SpA 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:NP5 vs VRTX, REGN, ALNY: Cash Conversion Cycle Comparison
For the Biotechnology subindustry, Newron Pharmaceuticals SpA'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.
Newron Pharmaceuticals SpA Cash Conversion Cycle vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Newron Pharmaceuticals SpA's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Newron Pharmaceuticals SpA'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.
Newron Pharmaceuticals SpA's Cash Conversion Cycle for the fiscal year that ended in Dec. 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.
Newron Pharmaceuticals SpA (FRA:NP5) has a Cash Conversion Cycle of 136.13 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Newron Pharmaceuticals SpA and its competitors.
Is Newron Pharmaceuticals SpA's Cash Conversion Cycle too high?
Newron Pharmaceuticals SpA's current Cash Conversion Cycle is 136.13. The Biotechnology industry median Cash Conversion Cycle is 103.45. Newron Pharmaceuticals SpA's value of 136.13 is 31.6% above this industry median. Overall, Newron Pharmaceuticals SpA has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Newron Pharmaceuticals SpA's Cash Conversion Cycle compare to VRTX and REGN?
Newron Pharmaceuticals SpA's Cash Conversion Cycle of 136.13 can be compared against companies in the Biotechnology industry. The industry median Cash Conversion Cycle is 103.45. Newron Pharmaceuticals SpA's value of 136.13 is 31.6% 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 Biotechnology company?
The median Cash Conversion Cycle among Biotechnology companies is 103.45, based on 870 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. Newron Pharmaceuticals SpA's current Cash Conversion Cycle of 136.13 is 31.6% 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 Newron Pharmaceuticals SpA and its competitors. For the Biotechnology industry, the median Cash Conversion Cycle is 103.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newron Pharmaceuticals SpA's current Cash Conversion Cycle is 136.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newron Pharmaceuticals SpA stock overvalued right now?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA (FRA:NP5) is currently considered Fairly Valued. The stock's GF Value™ is €13.49, compared to a current price of €13.95 — trading 3.4% above its estimated fair value. The current Cash Conversion Cycle is 136.13 and 31.6% above the Biotechnology industry median of 103.45. Newron Pharmaceuticals SpA's overall GF Score™ is 64/100 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 Newron Pharmaceuticals SpA (FRA:NP5), the current Cash Conversion Cycle is 136.13 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 Newron Pharmaceuticals SpA (FRA:NP5) Overvalued in 2026?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA stock appears to be overvalued.
The current stock price of €13.95 is trading 3.4% above its estimated GF Value™ of €13.49.
GuruFocus considers Newron Pharmaceuticals SpA to be Fairly Valued.
Key valuation signals for FRA:NP5:
Cash Conversion Cycle: 136.13
GF Value™: €13.49 vs. price of €13.95 (3.4% above fair value)
Industry Position: 31.6% above the Biotechnology median
No single metric tells the full story. See the FRA:NP5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newron Pharmaceuticals SpA is a Italy-based clinical-stage biopharmaceutical company. It focuses on the discovery and development of pharmaceutical products. The Company is engaged in discovering and developing new therapies for diseases of the Central Nervous System (CNS) and pain. The Company undertakes phase III trials with safinamide molecule for the treatment of patients with Parkinson's disease. Newron Pharmaceuticals SpA develops ralfinamide, a molecule for the treatment of neuropathic pain. Geographically the research and development activities are performed in Italy and the United States.
64GF Score
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