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.
REN-Redes Energeticas Nacionais Sgps Cash Conversion Cycle Related Terms
REN-Redes Energeticas Nacionais Sgps 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.
HAM:RN4 vs SRE, AES: Cash Conversion Cycle Comparison
For the Utilities - Diversified subindustry, REN-Redes Energeticas Nacionais Sgps'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.
REN-Redes Energeticas Nacionais Sgps Cash Conversion Cycle vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, REN-Redes Energeticas Nacionais Sgps's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where REN-Redes Energeticas Nacionais Sgps'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.
* 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.
What does a Cash Conversion Cycle of -352.06 mean?
REN-Redes Energeticas Nacionais Sgps (HAM:RN4) has a Cash Conversion Cycle of -352.06 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on REN-Redes Energeticas Nacionais Sgps and its competitors.
Is REN-Redes Energeticas Nacionais Sgps' Cash Conversion Cycle too high?
REN-Redes Energeticas Nacionais Sgps' current Cash Conversion Cycle is -352.06. Overall, REN-Redes Energeticas Nacionais Sgps has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does REN-Redes Energeticas Nacionais Sgps' Cash Conversion Cycle compare to SRE and AES?
REN-Redes Energeticas Nacionais Sgps' Cash Conversion Cycle of -352.06 can be compared against companies in the Utilities - Regulated industry. The industry median Cash Conversion Cycle is 13.93. 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 497 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 REN-Redes Energeticas Nacionais Sgps 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. REN-Redes Energeticas Nacionais Sgps's current Cash Conversion Cycle is -352.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is REN-Redes Energeticas Nacionais Sgps stock overvalued right now?
Based on GuruFocus' analysis, REN-Redes Energeticas Nacionais Sgps (HAM:RN4) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.85, compared to a current price of €3.85 — trading 34.9% above its estimated fair value. The current Cash Conversion Cycle is -352.06. REN-Redes Energeticas Nacionais Sgps' overall GF Score™ is 80/100 with 11 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 REN-Redes Energeticas Nacionais Sgps (HAM:RN4), the current Cash Conversion Cycle is -352.06 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 REN-Redes Energeticas Nacionais Sgps (HAM:RN4) Overvalued in 2026?
Based on GuruFocus' analysis, REN-Redes Energeticas Nacionais Sgps stock appears to be overvalued.
The current stock price of €3.85 is trading 34.9% above its estimated GF Value™ of €2.85.
GuruFocus considers REN-Redes Energeticas Nacionais Sgps to be Significantly Overvalued.
Key valuation signals for HAM:RN4:
Cash Conversion Cycle: -352.06
GF Value™: €2.85 vs. price of €3.85 (34.9% above fair value)
No single metric tells the full story. See the HAM:RN4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
REN-Redes Energeticas Nacionais Sgps Business Description
REN-Redes Energeticas Nacionais Sgps SA is an energy and utility company that operates as the primary concession holder for electricity transmission and natural gas transportation in Portugal. It manages the national high-voltage electricity grid, high-pressure natural gas pipelines, LNG terminal, and underground storage, focusing on energy transition, sustainability, and security of supply. The Group presently has two main business segments, Electricity and Gas, and a secondary business of Telecommunications.
80GF Score
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