Lumentum Holdings's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 45.92.
Lumentum Holdings's Days Inventory for the
three
months ended in Mar. 2026 was 120.88.
Lumentum Holdings's Days Payable for the
three
months ended in Mar. 2026 was 74.36.
Therefore, Lumentum Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 92.44.
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.
Lumentum Holdings Cash Conversion Cycle Related Terms
Lumentum Holdings Cash Conversion Cycle Historical Data
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The historical data trend for Lumentum Holdings'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.
MIL:1LITE vs MSI, HPE, CIEN: Cash Conversion Cycle Comparison
For the Communication Equipment subindustry, Lumentum Holdings'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.
Lumentum Holdings Cash Conversion Cycle vs Hardware Industry
For the Hardware industry and Technology sector, Lumentum Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Lumentum Holdings'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.
Lumentum Holdings'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.
Lumentum Holdings (MIL:1LITE) has a Cash Conversion Cycle of 92.44 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Lumentum Holdings and its competitors.
Is Lumentum Holdings' Cash Conversion Cycle too high?
Lumentum Holdings' current Cash Conversion Cycle is 92.44. The Hardware industry median Cash Conversion Cycle is 98.95. Lumentum Holdings' value of 92.44 is 6.6% below this industry median. Overall, Lumentum Holdings has a GF Score™ of 43/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lumentum Holdings' Cash Conversion Cycle compare to MSI and HPE?
Lumentum Holdings' Cash Conversion Cycle of 92.44 can be compared against companies in the Hardware industry. The industry median Cash Conversion Cycle is 98.95. Lumentum Holdings' value of 92.44 is 6.6% 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 Hardware company?
The median Cash Conversion Cycle among Hardware companies is 98.95, based on 2,475 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. Lumentum Holdings's current Cash Conversion Cycle of 92.44 is 6.6% 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 Lumentum Holdings and its competitors. For the Hardware industry, the median Cash Conversion Cycle is 98.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lumentum Holdings's current Cash Conversion Cycle is 92.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lumentum Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lumentum Holdings (MIL:1LITE) is currently considered Significantly Overvalued. The stock's GF Value™ is €80.08, compared to a current price of €691.20 — trading 763.1% above its estimated fair value. The current Cash Conversion Cycle is 92.44 and 6.6% below the Hardware industry median of 98.95. Lumentum Holdings' overall GF Score™ is 43/100 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 Lumentum Holdings (MIL:1LITE), the current Cash Conversion Cycle is 92.44 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 Lumentum Holdings (MIL:1LITE) Overvalued in 2026?
Based on GuruFocus' analysis, Lumentum Holdings stock appears to be overvalued.
The current stock price of €691.20 is trading 763.1% above its estimated GF Value™ of €80.08.
GuruFocus considers Lumentum Holdings to be Significantly Overvalued.
Key valuation signals for MIL:1LITE:
Cash Conversion Cycle: 92.44
GF Value™: €80.08 vs. price of €691.20 (763.1% above fair value)
No single metric tells the full story. See the MIL:1LITE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.
43GF Score
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