Nishat Mills's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 47.27.
Nishat Mills's Days Inventory for the
three
months ended in Mar. 2026 was 156.73.
Nishat Mills's Days Payable for the
three
months ended in Mar. 2026 was 44.06.
Therefore, Nishat Mills's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 159.94.
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.
Nishat Mills Cash Conversion Cycle Related Terms
Nishat Mills Cash Conversion Cycle Historical Data
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The historical data trend for Nishat Mills'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.
For the Textile Manufacturing subindustry, Nishat Mills'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.
Nishat Mills Cash Conversion Cycle vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nishat Mills's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Nishat Mills'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.
Nishat Mills's Cash Conversion Cycle for the fiscal year that ended in Jun. 2025 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.
Nishat Mills (KAR:NML) has a Cash Conversion Cycle of 159.94 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Nishat Mills and its competitors.
Is Nishat Mills' Cash Conversion Cycle too high?
Nishat Mills' current Cash Conversion Cycle is 159.94. The Manufacturing - Apparel & Accessories industry median Cash Conversion Cycle is 124.21. Nishat Mills' value of 159.94 is 28.8% above this industry median. Overall, Nishat Mills has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nishat Mills' Cash Conversion Cycle compare to competitors?
Nishat Mills' Cash Conversion Cycle of 159.94 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Cash Conversion Cycle is 124.21. Nishat Mills' value of 159.94 is 28.8% 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 Manufacturing - Apparel & Accessories company?
The median Cash Conversion Cycle among Manufacturing - Apparel & Accessories companies is 124.21, based on 1,037 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. Nishat Mills's current Cash Conversion Cycle of 159.94 is 28.8% 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 Nishat Mills and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Cash Conversion Cycle is 124.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nishat Mills's current Cash Conversion Cycle is 159.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nishat Mills stock overvalued right now?
Based on GuruFocus' analysis, Nishat Mills (KAR:NML) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨78.62, compared to a current price of ₨163.67 — trading 108.2% above its estimated fair value. The current Cash Conversion Cycle is 159.94 and 28.8% above the Manufacturing - Apparel & Accessories industry median of 124.21. Nishat Mills' overall GF Score™ is 74/100 with 7 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 Nishat Mills (KAR:NML), the current Cash Conversion Cycle is 159.94 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 Nishat Mills (KAR:NML) Overvalued in 2026?
Based on GuruFocus' analysis, Nishat Mills stock appears to be overvalued.
The current stock price of ₨163.67 is trading 108.2% above its estimated GF Value™ of ₨78.62.
GuruFocus considers Nishat Mills to be Significantly Overvalued.
Key valuation signals for KAR:NML:
Cash Conversion Cycle: 159.94
GF Value™: ₨78.62 vs. price of ₨163.67 (108.2% above fair value)
Industry Position: 28.8% above the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the KAR:NML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nishat Mills Ltd is engaged in the business of textile manufacturing and of spinning, combing, weaving, bleaching, dyeing, printing, stitching, apparel, buying, selling and otherwise dealing in yarn, linen, cloth and other goods and fabrics made from raw cotton, synthetic fibre and cloth and to generate, accumulate, distribute, supply and sell electricity. The company's segments are Spinning, Weaving, Dyeing, Denim, Workwear, Home Textile and Terry, Garments and Power Generation. It derives the majority of the revenue from Spinning segment that produces different quality of yarn including dyed yarn and sewing thread using natural and artificial fibres. Geographically it operates in Europe, America, Asia, Africa and Australia, and Pakistan.
74GF Score
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