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SDM Education Group Holdings's Days Sales Outstanding for the
three
months ended in Sep. 2023 was 147.83.
SDM Education Group Holdings's Days Inventory for the
three
months ended in Sep. 2023 was 5.61.
SDM Education Group Holdings's Days Payable for the
three
months ended in Sep. 2023 was 0.4.
Therefore, SDM Education Group Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2023 was 153.04.
SDM Education Group Holdings (HKSE:08363) 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.
SDM Education Group Holdings Cash Conversion Cycle Related Terms
SDM Education Group 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.
SDM Education Group Holdings Cash Conversion Cycle Chart
HKSE:08363 vs AIU, EDU, TAL: Cash Conversion Cycle Comparison
For the Education & Training Services subindustry, SDM Education Group 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.
SDM Education Group Holdings Cash Conversion Cycle vs Education Industry
For the Education industry and Consumer Defensive sector, SDM Education Group Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where SDM Education Group Holdings's Cash Conversion Cycle falls into.
SDM Education Group 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.
SDM Education Group Holdings's Cash Conversion Cycle for the fiscal year that ended in Dec. 2022 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.
SDM Education Group Holdings (HKSE:08363) has a Cash Conversion Cycle of 153.04 as of Sep. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SDM Education Group Holdings and its competitors.
Is SDM Education Group Holdings' Cash Conversion Cycle too high?
SDM Education Group Holdings' current Cash Conversion Cycle is 153.04. The Education industry median Cash Conversion Cycle is 11.53. SDM Education Group Holdings' value of 153.04 is 1227.9% above this industry median. Overall, SDM Education Group Holdings has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does SDM Education Group Holdings' Cash Conversion Cycle compare to AIU and EDU?
SDM Education Group Holdings' Cash Conversion Cycle of 153.04 can be compared against companies in the Education industry. The industry median Cash Conversion Cycle is 11.53. SDM Education Group Holdings' value of 153.04 is 1227.9% 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 an Education company?
The median Cash Conversion Cycle among Education companies is 11.53, based on 258 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. SDM Education Group Holdings's current Cash Conversion Cycle of 153.04 is 1227.9% 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 SDM Education Group Holdings and its competitors. For the Education industry, the median Cash Conversion Cycle is 11.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SDM Education Group Holdings's current Cash Conversion Cycle is 153.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SDM Education Group Holdings stock overvalued right now?
SDM Education Group Holdings (HKSE:08363) has a current Cash Conversion Cycle of 153.04. The current Cash Conversion Cycle is 153.04 and 1227.9% above the Education industry median of 11.53. SDM Education Group Holdings' 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 SDM Education Group Holdings (HKSE:08363), the current Cash Conversion Cycle is 153.04 as of Sep. 2023. 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.
SDM Education Group Holdings Ltd is engaged in the business of jazz and ballet and pop dance academy in Hong Kong and childcare services in Singapore. The operating segments of the group are the Dance academy business which involves jazz and ballet and pop dance academy in Hong Kong and the PRC and the Early childhood education business involving the operation of kindergartens and pre-schools in Hong Kong and Singapore and the Others segment. Geographically, the group has a business presence in Hong Kong and Singapore, of which key revenue is derived from Hong Kong.
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