Mughal Iron & Steel Industries (KAR:MUGHAL) 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.
Mughal Iron & Steel Industries Cash Conversion Cycle Related Terms
Mughal Iron & Steel Industries 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.
Mughal Iron & Steel Industries Cash Conversion Cycle Chart
KAR:MUGHAL vs NUE, STLD, RS: Cash Conversion Cycle Comparison
For the Steel subindustry, Mughal Iron & Steel Industries'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.
Mughal Iron & Steel Industries Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, Mughal Iron & Steel Industries's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Mughal Iron & Steel Industries's Cash Conversion Cycle falls into.
Mughal Iron & Steel Industries 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.
Mughal Iron & Steel Industries (KAR:MUGHAL) has a Cash Conversion Cycle of 141.20 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Mughal Iron & Steel Industries and its competitors.
Is Mughal Iron & Steel Industries' Cash Conversion Cycle too high?
Mughal Iron & Steel Industries' current Cash Conversion Cycle is 141.20. The Steel industry median Cash Conversion Cycle is 94.50. Mughal Iron & Steel Industries' value of 141.20 is 49.4% above this industry median. Overall, Mughal Iron & Steel Industries has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mughal Iron & Steel Industries' Cash Conversion Cycle compare to NUE and STLD?
Mughal Iron & Steel Industries' Cash Conversion Cycle of 141.20 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 94.50. Mughal Iron & Steel Industries' value of 141.20 is 49.4% 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 Steel company?
The median Cash Conversion Cycle among Steel companies is 94.50, based on 610 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. Mughal Iron & Steel Industries's current Cash Conversion Cycle of 141.20 is 49.4% 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 Mughal Iron & Steel Industries and its competitors. For the Steel industry, the median Cash Conversion Cycle is 94.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mughal Iron & Steel Industries's current Cash Conversion Cycle is 141.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mughal Iron & Steel Industries stock overvalued right now?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries (KAR:MUGHAL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨70.15, compared to a current price of ₨88.96 — trading 26.8% above its estimated fair value. The current Cash Conversion Cycle is 141.20 and 49.4% above the Steel industry median of 94.50. Mughal Iron & Steel Industries' overall GF Score™ is 90/100 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 Mughal Iron & Steel Industries (KAR:MUGHAL), the current Cash Conversion Cycle is 141.20 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 Mughal Iron & Steel Industries (KAR:MUGHAL) Overvalued in 2026?
Based on GuruFocus' analysis, Mughal Iron & Steel Industries stock appears to be overvalued.
The current stock price of ₨88.96 is trading 26.8% above its estimated GF Value™ of ₨70.15.
GuruFocus considers Mughal Iron & Steel Industries to be Modestly Overvalued.
Key valuation signals for KAR:MUGHAL:
Cash Conversion Cycle: 141.20
GF Value™: ₨70.15 vs. price of ₨88.96 (26.8% above fair value)
No single metric tells the full story. See the KAR:MUGHAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mughal Iron & Steel Industries Business Description
Mughal Iron & Steel Industries Ltd is engaged in the manufacturing and trading of mild steel products. The operating segments of the company are Ferrous, Non-Ferrous, and the Energy segment. The company's main products involve Steel re-bars (G60 / Mughal Supreme), Girders, Billets, Copper ingots, and Copper granules.
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