Mestek's Days Sales Outstanding for the
three
months ended in Sep. 2023 was 61.11.
Mestek's Days Inventory for the
three
months ended in Sep. 2023 was 127.26.
Mestek's Days Payable for the
three
months ended in Sep. 2023 was 14.14.
Therefore, Mestek's Cash Conversion Cycle (CCC) for the
three
months ended in Sep. 2023 was 174.23.
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.
Mestek Cash Conversion Cycle Related Terms
Mestek Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Mestek'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.
MCCK vs CSTE, PPIH, INVE: Cash Conversion Cycle Comparison
For the Building Products & Equipment subindustry, Mestek'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.
Mestek Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Mestek's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Mestek'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.
Mestek's Cash Conversion Cycle for the fiscal year that ended in Dec. 2017 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.
Mestek (MCCK) has a Cash Conversion Cycle of 174.23 as of Sep. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Mestek and its competitors.
Is Mestek's Cash Conversion Cycle too high?
Mestek's current Cash Conversion Cycle is 174.23. The Construction industry median Cash Conversion Cycle is 55.81. Mestek's value of 174.23 is 212.2% above this industry median. Overall, Mestek has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Mestek's Cash Conversion Cycle compare to CSTE and PPIH?
Mestek's Cash Conversion Cycle of 174.23 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.81. Mestek's value of 174.23 is 212.2% above 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.81, based on 1,763 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. Mestek's current Cash Conversion Cycle of 174.23 is 212.2% above 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 Mestek and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mestek's current Cash Conversion Cycle is 174.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mestek stock overvalued right now?
Mestek (MCCK) has a current Cash Conversion Cycle of 174.23. The current Cash Conversion Cycle is 174.23 and 212.2% above the Construction industry median of 55.81. Mestek's overall GF Score™ is 12/100. 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 Mestek (MCCK), the current Cash Conversion Cycle is 174.23 as of Sep. 2023. 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.
Mestek Inc and its subsidiaries manufacture and distribute heating, ventilating, and air conditioning equipment (HVAC), including architectural products and metal forming equipment. The company manufactures its HVAC equipment and metal forming equipment at twelve factory locations and sells through an established distributor, dealer, and manufacturer's representative channels in the United States and Canada. Geographically, it derives a majority of its revenue from North America and also has a presence in Europe, Asia, Mexico, and the Rest of the World.
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