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China New Higher Education Group (HKSE:02001) 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.
China New Higher Education Group Cash Conversion Cycle Related Terms
China New Higher Education 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.
China New Higher Education Group Cash Conversion Cycle Chart
HKSE:02001 vs EDU, TAL, LAUR: Cash Conversion Cycle Comparison
For the Education & Training Services subindustry, China New Higher Education 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.
China New Higher Education Group Cash Conversion Cycle vs Education Industry
For the Education industry and Consumer Defensive sector, China New Higher Education Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where China New Higher Education Group's Cash Conversion Cycle falls into.
China New Higher Education 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.
China New Higher Education Group (HKSE:02001) has a Cash Conversion Cycle of 0.43 as of Feb. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on China New Higher Education Group and its competitors.
Is China New Higher Education Group's Cash Conversion Cycle too high?
China New Higher Education Group's current Cash Conversion Cycle is 0.43. The Education industry median Cash Conversion Cycle is 9.69. China New Higher Education Group's value of 0.43 is 95.6% below this industry median. Overall, China New Higher Education Group has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China New Higher Education Group's Cash Conversion Cycle compare to EDU and TAL?
China New Higher Education Group's Cash Conversion Cycle of 0.43 can be compared against companies in the Education industry. The industry median Cash Conversion Cycle is 9.69. China New Higher Education Group's value of 0.43 is 95.6% 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 an Education company?
The median Cash Conversion Cycle among Education companies is 9.69, based on 256 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. China New Higher Education Group's current Cash Conversion Cycle of 0.43 is 95.6% 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 China New Higher Education Group and its competitors. For the Education industry, the median Cash Conversion Cycle is 9.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China New Higher Education Group's current Cash Conversion Cycle is 0.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China New Higher Education Group stock overvalued right now?
Based on GuruFocus' analysis, China New Higher Education Group (HKSE:02001) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.63, compared to a current price of HK$0.58 — trading 64.4% below its estimated fair value. The current Cash Conversion Cycle is 0.43 and 95.6% below the Education industry median of 9.69. China New Higher Education Group's overall GF Score™ is 82/100 with 4 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 China New Higher Education Group (HKSE:02001), the current Cash Conversion Cycle is 0.43 as of Feb. 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 China New Higher Education Group (HKSE:02001) Overvalued in 2026?
Based on GuruFocus' analysis, China New Higher Education Group stock appears to be undervalued.
The current stock price of HK$0.58 is trading 64.4% below its estimated GF Value™ of HK$1.63.
GuruFocus considers China New Higher Education Group to be Possible Value Trap.
Key valuation signals for HKSE:02001:
Cash Conversion Cycle: 0.43
GF Value™: HK$1.63 vs. price of HK$0.58 (64.4% below fair value)
Industry Position: 95.6% below the Education median
No single metric tells the full story. See the HKSE:02001 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China New Higher Education Group Business Description
China New Higher Education Group Ltd is engaged in the operations of Yunnan School, Guizhou School, Central China School, Northeast School, Luoyang School, Guangxi Schools, Gansu School and Zhengzhou School. The Group provides education services in the PRC and operates within one geographical location, as all revenues were generated in the PRC.
82GF Score
Get the complete analysis for HKSE:02001
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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