Softcat's Days Sales Outstanding for the
six
months ended in Jan. 2026 was 128.87.
Softcat's Days Inventory for the
six
months ended in Jan. 2026 was 26.76.
Softcat's Days Payable for the
six
months ended in Jan. 2026 was 111.33.
Therefore, Softcat's Cash Conversion Cycle (CCC) for the
six
months ended in Jan. 2026 was 44.30.
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.
Softcat Cash Conversion Cycle Related Terms
Softcat Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Softcat'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.
LSE:SCT vs SNX, ARW, AVT: Cash Conversion Cycle Comparison
For the Electronics & Computer Distribution subindustry, Softcat'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.
Softcat Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Softcat's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Softcat'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.
Softcat's Cash Conversion Cycle for the fiscal year that ended in Jul. 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.
Softcat (LSE:SCT) has a Cash Conversion Cycle of 44.30 as of Jan. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Softcat and its competitors.
Is Softcat's Cash Conversion Cycle too high?
Softcat's current Cash Conversion Cycle is 44.30. The Hardware industry median Cash Conversion Cycle is 98.95. Softcat's value of 44.30 is 55.2% below this industry median. Overall, Softcat has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Softcat's Cash Conversion Cycle compare to SNX and ARW?
Softcat's Cash Conversion Cycle of 44.30 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Softcat's value of 44.30 is 55.2% 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,477 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. Softcat's current Cash Conversion Cycle of 44.30 is 55.2% 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 Softcat and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Softcat's current Cash Conversion Cycle is 44.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Softcat stock overvalued right now?
Based on GuruFocus' analysis, Softcat (LSE:SCT) is currently considered Modestly Undervalued. The stock's GF Value™ is £26.03, compared to a current price of £19.14 — trading 26.5% below its estimated fair value. The current Cash Conversion Cycle is 44.30 and 55.2% below the Hardware industry median of 98.95. Softcat's overall GF Score™ is 86/100 with 4 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 Softcat (LSE:SCT), the current Cash Conversion Cycle is 44.30 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 Softcat (LSE:SCT) Overvalued in 2026?
Based on GuruFocus' analysis, Softcat stock appears to be undervalued.
The current stock price of £19.14 is trading 26.5% below its estimated GF Value™ of £26.03.
GuruFocus considers Softcat to be Modestly Undervalued.
Key valuation signals for LSE:SCT:
Cash Conversion Cycle: 44.30
GF Value™: £26.03 vs. price of £19.14 (26.5% below fair value)
Industry Position: 55.2% below the Hardware median
No single metric tells the full story. See the LSE:SCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Softcat PLC is an information technology infrastructure and service provider offering software licensing, workplace technology, networking and security, and cloud and data center solutions to corporates, public sector organizations, and small to medium-sized businesses, with the latter being the main business provider. It earns revenue from software, hardware, and services, including its own services, with the majority derived from software products. Its solutions include Workspace, Cyber Security, Networking and Connectivity, Data, Automation and AI, and Hybrid Cloud Solutions. The company serves Small to Medium Businesses, Enterprise, Multinational Services, and the Public Sector including healthcare, education, government, defence, police, and emergency services.
86GF Score
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