Lianhe Sowell International Group (NAS:LHSW) 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.
Lianhe Sowell International Group Cash Conversion Cycle Related Terms
Lianhe Sowell International Group 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.
Lianhe Sowell International Group Cash Conversion Cycle Chart
Lianhe Sowell International Group Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Cash Conversion Cycle
106.76
51.59
53.10
49.72
Lianhe Sowell International Group Semi-Annual Data
LHSW vs HUBC, TGCB, OLB: Cash Conversion Cycle Comparison
For the Software - Infrastructure subindustry, Lianhe Sowell International Group'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.
Lianhe Sowell International Group Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Lianhe Sowell International Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Lianhe Sowell International Group's Cash Conversion Cycle falls into.
Lianhe Sowell International Group 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.
Lianhe Sowell International Group (LHSW) has a Cash Conversion Cycle of 25.45 as of Sep. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Lianhe Sowell International Group and its competitors.
Is Lianhe Sowell International Group's Cash Conversion Cycle too high?
Lianhe Sowell International Group's current Cash Conversion Cycle is 25.45. The Software industry median Cash Conversion Cycle is 32.25. Lianhe Sowell International Group's value of 25.45 is 21.1% below this industry median. Overall, Lianhe Sowell International Group has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Lianhe Sowell International Group's Cash Conversion Cycle compare to HUBC and TGCB?
Lianhe Sowell International Group's Cash Conversion Cycle of 25.45 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.25. Lianhe Sowell International Group's value of 25.45 is 21.1% 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. Lianhe Sowell International Group's current Cash Conversion Cycle of 25.45 is 21.1% 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 Lianhe Sowell International Group 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. Lianhe Sowell International Group's current Cash Conversion Cycle is 25.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lianhe Sowell International Group stock overvalued right now?
Lianhe Sowell International Group (LHSW) has a current Cash Conversion Cycle of 25.45. The current Cash Conversion Cycle is 25.45 and 21.1% below the Software industry median of 32.25. Lianhe Sowell International Group's overall GF Score™ is 20/100 with 5 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 Lianhe Sowell International Group (LHSW), the current Cash Conversion Cycle is 25.45 as of Sep. 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.
Lianhe Sowell International Group Business Description
Lianhe Sowell International Group Ltd is a holding company and operates its business through its subsidiary. It is a provider of machine vision products and solutions in China that invent and integrate technologies and solutions that address some of the critical manufacturing and distribution challenges, such as precision and accuracy required in manufacturing of electronic products. The company categorize machine vision products in four categories based on their application settings: Industrial Machine Vision, Artificial Intelligence (Face Recognition and AI Behavior Analysis), Intelligent Weak Current (Building Intelligence and Intelligent Transportation) and Electronic Customs Clearance.
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