Labat Africa's Days Sales Outstanding for the
six
months ended in Nov. 2025 was 297.67.
Labat Africa's Days Inventory for the
six
months ended in Nov. 2025 was 1239.87.
Labat Africa's Days Payable for the
six
months ended in Nov. 2025 was 1000.33.
Therefore, Labat Africa's Cash Conversion Cycle (CCC) for the
six
months ended in Nov. 2025 was 537.21.
Labat Africa (JSE:LAB) 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.
Labat Africa Cash Conversion Cycle Related Terms
Labat Africa Cash Conversion Cycle Historical Data
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The historical data trend for Labat Africa'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.
JSE:LAB vs ZTS, UTHR, VTRS: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Labat Africa's Cash Conversion Cycle falls into.
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.
Labat Africa's Cash Conversion Cycle for the fiscal year that ended in May. 2024 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.
Labat Africa (JSE:LAB) has a Cash Conversion Cycle of 537.21 as of Nov. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Labat Africa and its competitors.
Is Labat Africa's Cash Conversion Cycle too high?
Labat Africa's current Cash Conversion Cycle is 537.21. The Drug Manufacturers industry median Cash Conversion Cycle is 145.72. Labat Africa's value of 537.21 is 268.7% above this industry median.
How does Labat Africa's Cash Conversion Cycle compare to ZTS and UTHR?
Labat Africa's Cash Conversion Cycle of 537.21 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.72. Labat Africa's value of 537.21 is 268.7% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.72, based on 950 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. Labat Africa's current Cash Conversion Cycle of 537.21 is 268.7% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Cash Conversion Cycle is 537.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Cash Conversion Cycle is 537.21 and 268.7% above the Drug Manufacturers industry median of 145.72. 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 Labat Africa (JSE:LAB), the current Cash Conversion Cycle is 537.21 as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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