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Differ Group Auto's Days Sales Outstanding for the
six
months ended in Jun. 2024 was 88.61.
Differ Group Auto's Days Inventory for the
six
months ended in Jun. 2024 was 2941.49.
Differ Group Auto's Days Payable for the
six
months ended in Jun. 2024 was 542.84.
Therefore, Differ Group Auto's Cash Conversion Cycle (CCC) for the
six
months ended in Jun. 2024 was 2,487.26.
Differ Group Auto (HKSE:06878) 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.
Differ Group Auto Cash Conversion Cycle Related Terms
Differ Group Auto Cash Conversion Cycle Historical Data
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The historical data trend for Differ Group Auto's Cash Conversion Cycle can be seen below:
* 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.
HKSE:06878 vs V, MA, AXP: Cash Conversion Cycle Comparison
For the Credit Services subindustry, Differ Group Auto'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.
Differ Group Auto Cash Conversion Cycle vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Differ Group Auto's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Differ Group Auto's Cash Conversion Cycle falls into.
Differ Group Auto 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.
Differ Group Auto's Cash Conversion Cycle for the fiscal year that ended in Dec. 2023 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.
What does a Cash Conversion Cycle of 2,487.26 mean?
Differ Group Auto (HKSE:06878) has a Cash Conversion Cycle of 2,487.26 as of Jun. 2024. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Differ Group Auto and its competitors.
Is Differ Group Auto's Cash Conversion Cycle too high?
Differ Group Auto's current Cash Conversion Cycle is 2,487.26. The Credit Services industry median Cash Conversion Cycle is 1.52. Differ Group Auto's value of 2,487.26 is 164075.6% above this industry median. Overall, Differ Group Auto has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Differ Group Auto's Cash Conversion Cycle compare to V and MA?
Differ Group Auto's Cash Conversion Cycle of 2,487.26 can be compared against companies in the Credit Services industry. The industry median Cash Conversion Cycle is 1.52. Differ Group Auto's value of 2,487.26 is 164075.6% 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 Credit Services company?
The median Cash Conversion Cycle among Credit Services companies is 1.52, based on 378 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. Differ Group Auto's current Cash Conversion Cycle of 2,487.26 is 164075.6% 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 Differ Group Auto and its competitors. For the Credit Services industry, the median Cash Conversion Cycle is 1.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Differ Group Auto's current Cash Conversion Cycle is 2,487.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Differ Group Auto stock overvalued right now?
Differ Group Auto (HKSE:06878) has a current Cash Conversion Cycle of 2,487.26. The current Cash Conversion Cycle is 2,487.26 and 164075.6% above the Credit Services industry median of 1.52. Differ Group Auto's overall GF Score™ is 4/100. 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 Differ Group Auto (HKSE:06878), the current Cash Conversion Cycle is 2,487.26 as of Jun. 2024. 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.
Differ Group Auto Ltd, formerly Differ Group Holding Company Limited, is a China-based investment holding company. The Company conducts its businesses primarily through four segments. The Financial Services segment is principally engaged in the provision of guarantee services, express loan services, advisory services, financial leasing services, financial securities services and asset management. The Property Development and Investment segment is principally engaged in the operation of property development projects and property investment activities. The Commodity Trading segment is mainly engaged in the trading of commodities. The Automotive E-commerce segment is principally engaged in the operation of online automotive e-commerce platforms.
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