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Velocity Composites's Days Sales Outstanding for the
six
months ended in Apr. 2026 was 56.5.
Velocity Composites's Days Inventory for the
six
months ended in Apr. 2026 was 60.64.
Velocity Composites's Days Payable for the
six
months ended in Apr. 2026 was 73.4.
Therefore, Velocity Composites's Cash Conversion Cycle (CCC) for the
six
months ended in Apr. 2026 was 43.74.
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.
Velocity Composites Cash Conversion Cycle Related Terms
Velocity Composites Cash Conversion Cycle Historical Data
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The historical data trend for Velocity Composites'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:VEL vs SPCX, GE, RTX: Cash Conversion Cycle Comparison
For the Aerospace & Defense subindustry, Velocity Composites'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.
Velocity Composites Cash Conversion Cycle vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Velocity Composites's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Velocity Composites'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.
Velocity Composites's Cash Conversion Cycle for the fiscal year that ended in Oct. 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.
Velocity Composites (LSE:VEL) has a Cash Conversion Cycle of 43.74 as of Apr. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Velocity Composites and its competitors.
Is Velocity Composites' Cash Conversion Cycle too high?
Velocity Composites' current Cash Conversion Cycle is 43.74. The Aerospace & Defense industry median Cash Conversion Cycle is 135.55. Velocity Composites' value of 43.74 is 67.7% below this industry median. Overall, Velocity Composites has a GF Score™ of 34/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Composites' Cash Conversion Cycle compare to SPCX and GE?
Velocity Composites' Cash Conversion Cycle of 43.74 can be compared against companies in the Aerospace & Defense industry. The industry median Cash Conversion Cycle is 135.55. Velocity Composites' value of 43.74 is 67.7% 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 an Aerospace & Defense company?
The median Cash Conversion Cycle among Aerospace & Defense companies is 135.55, based on 350 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. Velocity Composites's current Cash Conversion Cycle of 43.74 is 67.7% 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 Velocity Composites and its competitors. For the Aerospace & Defense industry, the median Cash Conversion Cycle is 135.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Composites's current Cash Conversion Cycle is 43.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Composites stock overvalued right now?
Based on GuruFocus' analysis, Velocity Composites (LSE:VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.23, compared to a current price of £0.14 — trading 39.1% below its estimated fair value. The current Cash Conversion Cycle is 43.74 and 67.7% below the Aerospace & Defense industry median of 135.55. Velocity Composites' overall GF Score™ is 34/100 with 3 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 Velocity Composites (LSE:VEL), the current Cash Conversion Cycle is 43.74 as of Apr. 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 Velocity Composites (LSE:VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Composites stock appears to be undervalued.
The current stock price of £0.14 is trading 39.1% below its estimated GF Value™ of £0.23.
GuruFocus considers Velocity Composites to be Significantly Undervalued.
Key valuation signals for LSE:VEL:
Cash Conversion Cycle: 43.74
GF Value™: £0.23 vs. price of £0.14 (39.1% below fair value)
Industry Position: 67.7% below the Aerospace & Defense median
No single metric tells the full story. See the LSE:VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Composites PLC is a provider of engineered composite and process material kits to the aerospace industry. The company's offerings include Engineered Vacuum Bag Material Kits, Structural Material Kits and other Support Services. The majority of revenue is derived from the sale of goods. Geographically, it generates the maximum revenue from the United Kingdom, and the rest from Europe, the USA and the rest of the World.
34GF Score
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