Kingdee International Software Group Co (OTCPK:KGDEF) 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.
Kingdee International Software Group Co Cash Conversion Cycle Related Terms
Kingdee International Software Group 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.
Kingdee International Software Group Co Cash Conversion Cycle Chart
Kingdee International Software Group Co Annual Data
KGDEF vs UBER, SHOP, CRM: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Kingdee International Software Group 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.
Kingdee International Software Group Co Cash Conversion Cycle vs Software Industry
Kingdee International Software Group 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.
Kingdee International Software Group Co (KGDEF) has a Cash Conversion Cycle of 8.86 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Kingdee International Software Group Co and its competitors.
Is Kingdee International Software Group Co's Cash Conversion Cycle too high?
Kingdee International Software Group Co's current Cash Conversion Cycle is 8.86. The Software industry median Cash Conversion Cycle is 32.25. Kingdee International Software Group Co's value of 8.86 is 72.5% below this industry median. Overall, Kingdee International Software Group Co has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingdee International Software Group Co's Cash Conversion Cycle compare to UBER and SHOP?
Kingdee International Software Group Co's Cash Conversion Cycle of 8.86 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.25. Kingdee International Software Group Co's value of 8.86 is 72.5% 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.25, based on 2,803 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. Kingdee International Software Group Co's current Cash Conversion Cycle of 8.86 is 72.5% 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 Kingdee International Software Group Co and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kingdee International Software Group Co's current Cash Conversion Cycle is 8.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingdee International Software Group Co stock overvalued right now?
Based on GuruFocus' analysis, Kingdee International Software Group Co (KGDEF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.09, compared to a current price of $0.75 — trading 64.2% below its estimated fair value. The current Cash Conversion Cycle is 8.86 and 72.5% below the Software industry median of 32.25. Kingdee International Software Group Co's overall GF Score™ is 69/100 with 3 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 Kingdee International Software Group Co (KGDEF), the current Cash Conversion Cycle is 8.86 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 Kingdee International Software Group Co (KGDEF) Overvalued in 2026?
Based on GuruFocus' analysis, Kingdee International Software Group Co stock appears to be undervalued.
The current stock price of $0.75 is trading 64.2% below its estimated GF Value™ of $2.09.
GuruFocus considers Kingdee International Software Group Co to be Significantly Undervalued.
Key valuation signals for KGDEF:
Cash Conversion Cycle: 8.86
GF Value™: $2.09 vs. price of $0.75 (64.2% below fair value)
Industry Position: 72.5% below the Software median
No single metric tells the full story. See the KGDEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kingdee International Software Group Co Business Description
Kingdee International Software Group Co Ltd is engaged in cloud services, including enterprise cloud services, small & micro business finance cloud services, and industry cloud services; and enterprise resource planning business, including development and sales of software products. It has two operating segments: Subscription and software- Including subscriptions and sales of software, and Implementation, consulting, maintenance services, and others - including provision of subscription and software implementation services, software solution consulting, maintenance, upgrade, and other supporting services, and others.
69GF Score
Get the complete analysis for KGDEF
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KGDEF has been successfully added to your 
