Hon Hai Precision Industry Co (OTCPK:HNHPF) 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.
Hon Hai Precision Industry Co Cash Conversion Cycle Related Terms
Hon Hai 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.
Hon Hai Precision Industry Co Cash Conversion Cycle Chart
HNHPF vs APH, GLW, TEL: Cash Conversion Cycle Comparison
For the Electronic Components subindustry, Hon Hai 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.
Hon Hai Precision Industry Co Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Hon Hai Precision Industry Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Hon Hai Precision Industry Co's Cash Conversion Cycle falls into.
Hon Hai 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.
Hon Hai Precision Industry Co (HNHPF) has a Cash Conversion Cycle of 35.16 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Hon Hai Precision Industry Co and its competitors.
Is Hon Hai Precision Industry Co's Cash Conversion Cycle too high?
Hon Hai Precision Industry Co's current Cash Conversion Cycle is 35.16. The Hardware industry median Cash Conversion Cycle is 98.93. Hon Hai Precision Industry Co's value of 35.16 is 64.5% below this industry median. Overall, Hon Hai Precision Industry Co has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hon Hai Precision Industry Co's Cash Conversion Cycle compare to APH and GLW?
Hon Hai Precision Industry Co's Cash Conversion Cycle of 35.16 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.93. Hon Hai Precision Industry Co's value of 35.16 is 64.5% 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 98.93, based on 2,473 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. Hon Hai Precision Industry Co's current Cash Conversion Cycle of 35.16 is 64.5% 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 Hon Hai Precision Industry Co and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hon Hai Precision Industry Co's current Cash Conversion Cycle is 35.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hon Hai Precision Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co (HNHPF) is currently considered Fairly Valued. The stock's GF Value™ is $13.64, compared to a current price of $14.62 — trading 7.2% above its estimated fair value. The current Cash Conversion Cycle is 35.16 and 64.5% below the Hardware industry median of 98.93. Hon Hai Precision Industry Co's overall GF Score™ is 91/100 with 1 warning sign 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 Hon Hai Precision Industry Co (HNHPF), the current Cash Conversion Cycle is 35.16 as of Dec. 2025. 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 Hon Hai Precision Industry Co (HNHPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hon Hai Precision Industry Co stock appears to be overvalued.
The current stock price of $14.62 is trading 7.2% above its estimated GF Value™ of $13.64.
GuruFocus considers Hon Hai Precision Industry Co to be Fairly Valued.
Key valuation signals for HNHPF:
Cash Conversion Cycle: 35.16
GF Value™: $13.64 vs. price of $14.62 (7.2% above fair value)
Industry Position: 64.5% below the Hardware median
No single metric tells the full story. See the HNHPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hon Hai Precision Industry Co Business Description
Hon Hai Precision is the world's largest contract manufacturer of consumer electronics, communications, and computer products. It is the biggest supplier to Apple, whose business accounted for around 50% of overall revenue in 2025. Hon Hai is also involved in the production of upstream components such as electronic connectors, semiconductor packaging, and metal casings for smartphones, as well as producing servers. These upstream activities are mainly conducted through its listed majority-owned subsidiaries Foxconn Industrial Internet and FIH Mobile. In response to its traditional end markets of computers, smartphones, and telecom equipment maturing in 2019 it started on a strategy to develop expertise in three new growth areas—electric vehicles, digital health, and robotics.
91GF Score
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