Honda Motor Co's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 66.44.
Honda Motor Co's Days Inventory for the
three
months ended in Mar. 2026 was 41.83.
Honda Motor Co's Days Payable for the
three
months ended in Mar. 2026 was 28.33.
Therefore, Honda Motor Co's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 79.94.
Honda Motor Co (MEX:HMCN) 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.
Honda Motor Co Cash Conversion Cycle Related Terms
Honda Motor Co Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Honda Motor Co'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.
MEX:HMCN vs TSLA, GM, F: Cash Conversion Cycle Comparison
For the Auto Manufacturers subindustry, Honda Motor Co'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.
Honda Motor Co Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Motor Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Honda Motor Co'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.
Honda Motor Co's Cash Conversion Cycle for the fiscal year that ended in Mar. 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.
Honda Motor Co (MEX:HMCN) has a Cash Conversion Cycle of 79.94 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Honda Motor Co and its competitors.
Is Honda Motor Co's Cash Conversion Cycle too high?
Honda Motor Co's current Cash Conversion Cycle is 79.94. The Vehicles & Parts industry median Cash Conversion Cycle is 67.53. Honda Motor Co's value of 79.94 is 18.4% above this industry median. Overall, Honda Motor Co has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Motor Co's Cash Conversion Cycle compare to TSLA and GM?
Honda Motor Co's Cash Conversion Cycle of 79.94 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.53. Honda Motor Co's value of 79.94 is 18.4% 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 Vehicles & Parts company?
The median Cash Conversion Cycle among Vehicles & Parts companies is 67.53, based on 1,326 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. Honda Motor Co's current Cash Conversion Cycle of 79.94 is 18.4% 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 Honda Motor Co and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honda Motor Co's current Cash Conversion Cycle is 79.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honda Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Honda Motor Co (MEX:HMCN) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN627.27, compared to a current price of MXN455.00 — trading 27.5% below its estimated fair value. The current Cash Conversion Cycle is 79.94 and 18.4% above the Vehicles & Parts industry median of 67.53. Honda Motor Co's overall GF Score™ is 62/100 with 5 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 Honda Motor Co (MEX:HMCN), the current Cash Conversion Cycle is 79.94 as of Mar. 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 Honda Motor Co (MEX:HMCN) Overvalued in 2026?
Based on GuruFocus' analysis, Honda Motor Co stock appears to be undervalued.
The current stock price of MXN455.00 is trading 27.5% below its estimated GF Value™ of MXN627.27.
GuruFocus considers Honda Motor Co to be Modestly Undervalued.
Key valuation signals for MEX:HMCN:
Cash Conversion Cycle: 79.94
GF Value™: MXN627.27 vs. price of MXN455.00 (27.5% below fair value)
Industry Position: 18.4% above the Vehicles & Parts median
No single metric tells the full story. See the MEX:HMCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Incorporated in 1948, Honda Motor was originally a motorcycle manufacturer. Today, the firm makes automobiles, motorcycles, and power products such as boat engines, generators, and lawnmowers. Including joint ventures, Honda sold 3.4 million light vehicles and 22.1 million motorcycles in fiscal 2026, and consolidated sales were JPY 21.8 trillion. Automobiles constitute 64% of revenue and motorcycles 18%, with the rest split between power products and financial services. Honda also makes robots and private jets.
62GF Score
Get the complete analysis for MEX:HMCN
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:HMCN has been successfully added to your 
