Inspiration Healthcare Group (LSE:IHC) 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.
Inspiration Healthcare Group Cash Conversion Cycle Related Terms
Inspiration Healthcare 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.
Inspiration Healthcare Group Cash Conversion Cycle Chart
LSE:IHC vs ABT, SYK, MDT: Cash Conversion Cycle Comparison
For the Medical Devices subindustry, Inspiration Healthcare 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.
Inspiration Healthcare Group Cash Conversion Cycle vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Inspiration Healthcare Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Inspiration Healthcare Group's Cash Conversion Cycle falls into.
Inspiration Healthcare 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.
Inspiration Healthcare Group's Cash Conversion Cycle for the fiscal year that ended in Jan. 2026 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.
Inspiration Healthcare Group (LSE:IHC) has a Cash Conversion Cycle of 137.21 as of Jan. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Inspiration Healthcare Group and its competitors.
Is Inspiration Healthcare Group's Cash Conversion Cycle too high?
Inspiration Healthcare Group's current Cash Conversion Cycle is 137.21. The Medical Devices & Instruments industry median Cash Conversion Cycle is 156.96. Inspiration Healthcare Group's value of 137.21 is 12.6% below this industry median. Overall, Inspiration Healthcare Group has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Inspiration Healthcare Group's Cash Conversion Cycle compare to ABT and SYK?
Inspiration Healthcare Group's Cash Conversion Cycle of 137.21 can be compared against companies in the Medical Devices & Instruments industry. The industry median Cash Conversion Cycle is 156.96. Inspiration Healthcare Group's value of 137.21 is 12.6% 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 Medical Devices & Instruments company?
The median Cash Conversion Cycle among Medical Devices & Instruments companies is 156.96, based on 817 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. Inspiration Healthcare Group's current Cash Conversion Cycle of 137.21 is 12.6% 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 Inspiration Healthcare Group and its competitors. For the Medical Devices & Instruments industry, the median Cash Conversion Cycle is 156.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Inspiration Healthcare Group's current Cash Conversion Cycle is 137.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inspiration Healthcare Group stock overvalued right now?
Based on GuruFocus' analysis, Inspiration Healthcare Group (LSE:IHC) is currently considered Fairly Valued. The stock's GF Value™ is £0.22, compared to a current price of £0.21 — trading 6.8% below its estimated fair value. The current Cash Conversion Cycle is 137.21 and 12.6% below the Medical Devices & Instruments industry median of 156.96. Inspiration Healthcare Group's overall GF Score™ is 48/100 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 Inspiration Healthcare Group (LSE:IHC), the current Cash Conversion Cycle is 137.21 as of Jan. 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 Inspiration Healthcare Group (LSE:IHC) Overvalued in 2026?
Based on GuruFocus' analysis, Inspiration Healthcare Group stock appears to be undervalued.
The current stock price of £0.21 is trading 6.8% below its estimated GF Value™ of £0.22.
GuruFocus considers Inspiration Healthcare Group to be Fairly Valued.
Key valuation signals for LSE:IHC:
Cash Conversion Cycle: 137.21
GF Value™: £0.22 vs. price of £0.21 (6.8% below fair value)
Industry Position: 12.6% below the Medical Devices & Instruments median
No single metric tells the full story. See the LSE:IHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Inspiration Healthcare Group PLC supplies outcome-improving medical devices in the areas of neonatal intensive care and patient warming. It operates in the Critical Care Medical Devices segment which includes Critical Care, Operating Theatre, and Home Healthcare. The company derives the maximum of its revenue from the United Kingdom through the Critical Care market division.
48GF Score
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