Open Text's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 45.73.
Open Text's Days Inventory for the
three
months ended in Mar. 2026 was 0.
Open Text's Days Payable for the
three
months ended in Mar. 2026 was 33.56.
Therefore, Open Text's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 12.17.
Open Text (MEX:OTEXN) 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.
Open Text Cash Conversion Cycle Related Terms
Open Text Cash Conversion Cycle Historical Data
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The historical data trend for Open Text'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:OTEXN vs CRM, SHOP, UBER: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Open Text'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.
Open Text Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Open Text's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Open Text'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.
Open Text's Cash Conversion Cycle for the fiscal year that ended in Jun. 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.
Open Text (MEX:OTEXN) has a Cash Conversion Cycle of 12.17 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Open Text and its competitors.
Is Open Text's Cash Conversion Cycle too high?
Open Text's current Cash Conversion Cycle is 12.17. The Software industry median Cash Conversion Cycle is 32.56. Open Text's value of 12.17 is 62.6% below this industry median. Overall, Open Text has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Open Text's Cash Conversion Cycle compare to CRM and SHOP?
Open Text's Cash Conversion Cycle of 12.17 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.56. Open Text's value of 12.17 is 62.6% 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.56, based on 2,805 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. Open Text's current Cash Conversion Cycle of 12.17 is 62.6% 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 Open Text and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Open Text's current Cash Conversion Cycle is 12.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Open Text stock overvalued right now?
Open Text (MEX:OTEXN) has a current Cash Conversion Cycle of 12.17. The stock's GF Value™ is MXN1,168.28, compared to a current price of MXN777.91 — trading 33.4% below its estimated fair value. The current Cash Conversion Cycle is 12.17 and 62.6% below the Software industry median of 32.56. Open Text's overall GF Score™ is 85/100 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 Open Text (MEX:OTEXN), the current Cash Conversion Cycle is 12.17 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 Open Text (MEX:OTEXN) Overvalued in 2026?
Based on GuruFocus' analysis, Open Text stock appears to be undervalued.
The current stock price of MXN777.91 is trading 33.4% below its estimated GF Value™ of MXN1,168.28.
Key valuation signals for MEX:OTEXN:
Cash Conversion Cycle: 12.17
GF Value™: MXN1,168.28 vs. price of MXN777.91 (33.4% below fair value)
Industry Position: 62.6% below the Software median
No single metric tells the full story. See the MEX:OTEXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world. The company's solutions are marketed and delivered on the OpenText Cloud Platform, which is a comprehensive Information Management platform consisting of six business clouds; Content Cloud, Cybersecurity Cloud, Application Automation Cloud, Business Network Cloud, IT Operations Management Cloud, and Analytics Cloud. Geographically, it derives maximum revenue from the United States.
85GF Score
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Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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