LCHD (Leader Capital Holdings) Cash Conversion Cycle: 17.11 (As of May. 2023)

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What is Leader Capital Holdings Cash Conversion Cycle?

Leader Capital Holdings LCHD Cash Conversion Cycle is 17.11 as of May. 2023.

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Leader Capital Holdings's Days Sales Outstanding for the three months ended in May. 2023 was 17.11.
Leader Capital Holdings's Days Inventory for the three months ended in May. 2023 was .
Leader Capital Holdings's Days Payable for the three months ended in May. 2023 was .
Therefore, Leader Capital Holdings's Cash Conversion Cycle (CCC) for the three months ended in May. 2023 was 17.11.


Leader Capital Holdings  (OTCPK:LCHD) 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.


Leader Capital Holdings Cash Conversion Cycle Related Terms


Leader Capital Holdings Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Leader Capital Holdings'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.

Leader Capital Holdings Cash Conversion Cycle Chart

Leader Capital Holdings Annual Data
Trend Aug17 Aug18 Aug19 Aug20 Aug21 Aug22
Cash Conversion Cycle
Get a 7-Day Free Trial 0.00 0.00 0.00 7.68 3.23

Leader Capital Holdings Quarterly Data
Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.38 1.99 2.15 5.34 17.11

LCHD vs MAPS, UPLD, OCFT: Cash Conversion Cycle Comparison

For the Software - Application subindustry, Leader Capital Holdings'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.


Leader Capital Holdings Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Leader Capital Holdings's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Leader Capital Holdings's Cash Conversion Cycle falls into.



Leader Capital Holdings 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.

Leader Capital Holdings's Cash Conversion Cycle for the fiscal year that ended in Aug. 2022 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=3.23+-
=3.23

Leader Capital Holdings's Cash Conversion Cycle for the quarter that ended in May. 2023 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=17.11+-
=17.11

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 17.11 mean?
Leader Capital Holdings (LCHD) has a Cash Conversion Cycle of 17.11 as of May. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Leader Capital Holdings and its competitors.
Is Leader Capital Holdings' Cash Conversion Cycle too high?
Leader Capital Holdings' current Cash Conversion Cycle is 17.11. The Software industry median Cash Conversion Cycle is 32.00. Leader Capital Holdings' value of 17.11 is 46.5% below this industry median.
How does Leader Capital Holdings' Cash Conversion Cycle compare to MAPS and UPLD?
Leader Capital Holdings' Cash Conversion Cycle of 17.11 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.00. Leader Capital Holdings' value of 17.11 is 46.5% 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 32.00, based on 2,814 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. Leader Capital Holdings's current Cash Conversion Cycle of 17.11 is 46.5% 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 Leader Capital Holdings and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leader Capital Holdings's current Cash Conversion Cycle is 17.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Capital Holdings stock overvalued right now?
Leader Capital Holdings (LCHD) has a current Cash Conversion Cycle of 17.11. The current Cash Conversion Cycle is 17.11 and 46.5% below the Software industry median of 32.00. 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 Leader Capital Holdings (LCHD), the current Cash Conversion Cycle is 17.11 as of May. 2023. 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.

Leader Capital Holdings Business Description

Address 418 Kwan Tong Road, Suite 2311, 23rd Floor, Millennium City 5 - BEA Tower, Kwun Tong, Kowloon, Hong Kong, HKG
Leader Capital Holdings Corp through its subsidiaries owns and operates a mobile application platform that connects the investor with other financial service providers. The company's application helps to meet the generic needs of financial service providers mainly for trust and insurance companies. The Company operates in the provision of investment platform services and Provision of software development service and maintenance service through mobile application.