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Luxshare Precision Industry Co (HKSE:02475) 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.
Luxshare Precision Industry Co Cash Conversion Cycle Related Terms
Luxshare Precision Industry 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.
Luxshare Precision Industry Co Cash Conversion Cycle Chart
For the Electronic Components subindustry, Luxshare Precision Industry 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.
Luxshare Precision Industry Co Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Luxshare Precision Industry Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Luxshare Precision Industry Co's Cash Conversion Cycle falls into.
Luxshare Precision Industry 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.
Luxshare Precision Industry Co (HKSE:02475) has a Cash Conversion Cycle of 9.14 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Luxshare Precision Industry Co and its competitors.
Is Luxshare Precision Industry Co's Cash Conversion Cycle too high?
Luxshare Precision Industry Co's current Cash Conversion Cycle is 9.14. The Hardware industry median Cash Conversion Cycle is 98.95. Luxshare Precision Industry Co's value of 9.14 is 90.8% below this industry median. Overall, Luxshare Precision Industry Co has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Luxshare Precision Industry Co's Cash Conversion Cycle compare to ?
Luxshare Precision Industry Co's Cash Conversion Cycle of 9.14 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Luxshare Precision Industry Co's value of 9.14 is 90.8% 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,482 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. Luxshare Precision Industry Co's current Cash Conversion Cycle of 9.14 is 90.8% 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 Luxshare Precision Industry Co and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luxshare Precision Industry Co's current Cash Conversion Cycle is 9.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luxshare Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Luxshare Precision Industry Co (HKSE:02475) is currently considered Modestly Overvalued. The stock's GF Value™ is HK$55.38, compared to a current price of HK$63.20 — trading 14.1% above its estimated fair value. The current Cash Conversion Cycle is 9.14 and 90.8% below the Hardware industry median of 98.95. Luxshare Precision Industry Co's overall GF Score™ is 69/100 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 Luxshare Precision Industry Co (HKSE:02475), the current Cash Conversion Cycle is 9.14 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 Luxshare Precision Industry Co (HKSE:02475) Overvalued in 2026?
Based on GuruFocus' analysis, Luxshare Precision Industry Co stock appears to be overvalued.
The current stock price of HK$63.20 is trading 14.1% above its estimated GF Value™ of HK$55.38.
GuruFocus considers Luxshare Precision Industry Co to be Modestly Overvalued.
Key valuation signals for HKSE:02475:
Cash Conversion Cycle: 9.14
GF Value™: HK$55.38 vs. price of HK$63.20 (14.1% above fair value)
Industry Position: 90.8% below the Hardware median
No single metric tells the full story. See the HKSE:02475 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luxshare Precision Industry Co Business Description
Founded in 2004, Luxshare Precision is one of the world's largest manufacturers of cables and connectors and is a major supplier to Apple, which accounts for over 70% of revenue. Of Luxshare's 2025 sales, 80% is derived from the consumer electronics end market, while the remaining 20% is spread across the computer, communication, and automobile verticals. In nonconsumer businesses, Luxshare supplies cooling systems, optical interconnects, cables, power supplies, and other electric hardware. Luxshare employs almost 420,000 people and has manufacturing bases in China, India, and Vietnam. Through acquiring German automotive cabling firm Leoni, it has added 26 more production sites, mainly in Europe and Africa.
69GF Score
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