Software Circle's Days Sales Outstanding for the
six
months ended in Sep. 2025 was 25.06.
Software Circle's Days Inventory for the
six
months ended in Sep. 2025 was 1.7.
Software Circle's Days Payable for the
six
months ended in Sep. 2025 was 37.39.
Therefore, Software Circle's Cash Conversion Cycle (CCC) for the
six
months ended in Sep. 2025 was -10.63.
Software Circle (LSE:SFT) 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.
Software Circle Cash Conversion Cycle Related Terms
Software Circle Cash Conversion Cycle Historical Data
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The historical data trend for Software Circle'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:SFT vs CTAS, CPRT, ULS: Cash Conversion Cycle Comparison
For the Specialty Business Services subindustry, Software Circle'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.
Software Circle Cash Conversion Cycle vs Business Services Industry
For the Business Services industry and Industrials sector, Software Circle's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Software Circle'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.
Software Circle's Cash Conversion Cycle for the fiscal year that ended in Mar. 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.
Software Circle (LSE:SFT) has a Cash Conversion Cycle of -10.63 as of Sep. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Software Circle and its competitors.
Is Software Circle's Cash Conversion Cycle too high?
Software Circle's current Cash Conversion Cycle is -10.63. Overall, Software Circle has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Software Circle's Cash Conversion Cycle compare to CTAS and CPRT?
Software Circle's Cash Conversion Cycle of -10.63 can be compared against companies in the Business Services industry. The industry median Cash Conversion Cycle is 38.50. 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 Business Services company?
The median Cash Conversion Cycle among Business Services companies is 38.50, based on 1,069 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. 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 Software Circle and its competitors. For the Business Services industry, the median Cash Conversion Cycle is 38.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Software Circle's current Cash Conversion Cycle is -10.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Software Circle stock overvalued right now?
Based on GuruFocus' analysis, Software Circle (LSE:SFT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.12, compared to a current price of £0.16 — trading 31.7% above its estimated fair value. The current Cash Conversion Cycle is -10.63. Software Circle's overall GF Score™ is 39/100 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 Software Circle (LSE:SFT), the current Cash Conversion Cycle is -10.63 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.
Is Software Circle (LSE:SFT) Overvalued in 2026?
Based on GuruFocus' analysis, Software Circle stock appears to be overvalued.
The current stock price of £0.16 is trading 31.7% above its estimated GF Value™ of £0.12.
GuruFocus considers Software Circle to be Significantly Overvalued.
Key valuation signals for LSE:SFT:
Cash Conversion Cycle: -10.63
GF Value™: £0.12 vs. price of £0.16 (31.7% above fair value)
No single metric tells the full story. See the LSE:SFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Software Circle PLC is a UK-based company that is an acquirer of great vertical market software businesses. The company operates complex logistics, a SaaS platform, and brands that sell print and web to business customers. The segmental analysis by nature of service includes license fees, company-owned studio revenue, brand partner print, and online sales plus trade print. Some of its brands include Nettl, watermark, and Topfloor. Geographically it has its business across the region of the UK and Ireland, Europe, and others of which the UK and Ireland's region accounts for a majority of the revenue.
39GF Score
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