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Modern Chinese Medicine Group Co (HKSE:01643) 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.
Modern Chinese Medicine Group Co Cash Conversion Cycle Related Terms
Modern Chinese Medicine Group Co 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.
Modern Chinese Medicine Group Co Cash Conversion Cycle Chart
HKSE:01643 vs LLY, JNJ, ABBV: Cash Conversion Cycle Comparison
For the Drug Manufacturers - General subindustry, Modern Chinese Medicine Group Co'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.
Modern Chinese Medicine Group Co Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Modern Chinese Medicine Group Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Modern Chinese Medicine Group Co's Cash Conversion Cycle falls into.
Modern Chinese Medicine Group Co 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.
Modern Chinese Medicine Group Co (HKSE:01643) has a Cash Conversion Cycle of 127.15 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Modern Chinese Medicine Group Co and its competitors.
Is Modern Chinese Medicine Group Co's Cash Conversion Cycle too high?
Modern Chinese Medicine Group Co's current Cash Conversion Cycle is 127.15. The Drug Manufacturers industry median Cash Conversion Cycle is 145.82. Modern Chinese Medicine Group Co's value of 127.15 is 12.8% below this industry median. Overall, Modern Chinese Medicine Group Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Modern Chinese Medicine Group Co's Cash Conversion Cycle compare to LLY and JNJ?
Modern Chinese Medicine Group Co's Cash Conversion Cycle of 127.15 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.82. Modern Chinese Medicine Group Co's value of 127.15 is 12.8% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.82, based on 955 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. Modern Chinese Medicine Group Co's current Cash Conversion Cycle of 127.15 is 12.8% 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 Modern Chinese Medicine Group Co and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Modern Chinese Medicine Group Co's current Cash Conversion Cycle is 127.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Modern Chinese Medicine Group Co stock overvalued right now?
Based on GuruFocus' analysis, Modern Chinese Medicine Group Co (HKSE:01643) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.16, compared to a current price of HK$0.94 — trading 487.5% above its estimated fair value. The current Cash Conversion Cycle is 127.15 and 12.8% below the Drug Manufacturers industry median of 145.82. Modern Chinese Medicine Group Co's overall GF Score™ is 53/100 with 3 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 Modern Chinese Medicine Group Co (HKSE:01643), the current Cash Conversion Cycle is 127.15 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 Modern Chinese Medicine Group Co (HKSE:01643) Overvalued in 2026?
Based on GuruFocus' analysis, Modern Chinese Medicine Group Co stock appears to be overvalued.
The current stock price of HK$0.94 is trading 487.5% above its estimated GF Value™ of HK$0.16.
GuruFocus considers Modern Chinese Medicine Group Co to be Significantly Overvalued.
Key valuation signals for HKSE:01643:
Cash Conversion Cycle: 127.15
GF Value™: HK$0.16 vs. price of HK$0.94 (487.5% above fair value)
Industry Position: 12.8% below the Drug Manufacturers median
No single metric tells the full story. See the HKSE:01643 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Modern Chinese Medicine Group Co Business Description
Modern Chinese Medicine Group Co Ltd is engaged in the production of Proprietary Chinese Medicines. It offers both OTC and prescribed medicines intended for use by the Middle-aged and the Elderly in the PRC. Its products include liver protection tablets, Shanmei capsules, Qi and blood supplement pills, and Xiaohuoluo pills, among others. Geographically, the company derives its key revenue from the People's Republic of China.
53GF 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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