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Smart City Development Holdings (HKSE:08268) 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.
Smart City Development Holdings Cash Conversion Cycle Related Terms
Smart City Development Holdings 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.
Smart City Development Holdings Cash Conversion Cycle Chart
HKSE:08268 vs PWR, FIX, EME: Cash Conversion Cycle Comparison
For the Engineering & Construction subindustry, Smart City Development Holdings'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.
Smart City Development Holdings Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Smart City Development Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Smart City Development Holdings's Cash Conversion Cycle falls into.
Smart City Development Holdings 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.
Smart City Development Holdings (HKSE:08268) has a Cash Conversion Cycle of -5.03 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Smart City Development Holdings and its competitors.
Is Smart City Development Holdings' Cash Conversion Cycle too high?
Smart City Development Holdings' current Cash Conversion Cycle is -5.03. Overall, Smart City Development Holdings has a GF Score™ of 39/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Smart City Development Holdings' Cash Conversion Cycle compare to PWR and FIX?
Smart City Development Holdings' Cash Conversion Cycle of -5.03 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.88. 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.88, based on 1,770 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 Smart City Development Holdings and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smart City Development Holdings's current Cash Conversion Cycle is -5.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smart City Development Holdings stock overvalued right now?
Based on GuruFocus' analysis, Smart City Development Holdings (HKSE:08268) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.37, compared to a current price of HK$0.19 — trading 48.6% below its estimated fair value. The current Cash Conversion Cycle is -5.03. Smart City Development Holdings' overall GF Score™ is 39/100 with 6 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 Smart City Development Holdings (HKSE:08268), the current Cash Conversion Cycle is -5.03 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 Smart City Development Holdings (HKSE:08268) Overvalued in 2026?
Based on GuruFocus' analysis, Smart City Development Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 48.6% below its estimated GF Value™ of HK$0.37.
GuruFocus considers Smart City Development Holdings to be Possible Value Trap.
Key valuation signals for HKSE:08268:
Cash Conversion Cycle: -5.03
GF Value™: HK$0.37 vs. price of HK$0.19 (48.6% below fair value)
No single metric tells the full story. See the HKSE:08268 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smart City Development Holdings Ltd is involved in securities investment, money lending, property investment and construction business sectors. The company has four segments: the construction segment, which is the key revenue-generating business, involves various processes including, building construction works, electrical and mechanical engineering works and fitting-out works; the securities investment segment is engaged in investment in securities; the property investment business segment is engaged in the holding of investment properties; and the money lending business segment. It has a business presence in Hong Kong and Mainland China.
39GF Score
Get the complete analysis for HKSE:08268
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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