Natural Grocers by Vitamin Cottage (NYSE:NGVC) 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.
Natural Grocers by Vitamin Cottage Cash Conversion Cycle Related Terms
Natural Grocers by Vitamin Cottage Cash Conversion Cycle Historical Data
* 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.
Natural Grocers by Vitamin Cottage Cash Conversion Cycle Chart
NGVC vs VLGEA, YSWY, DNUT: Cash Conversion Cycle Comparison
For the Grocery Stores subindustry, Natural Grocers by Vitamin Cottage'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.
Natural Grocers by Vitamin Cottage Cash Conversion Cycle vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Natural Grocers by Vitamin Cottage's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Natural Grocers by Vitamin Cottage's Cash Conversion Cycle falls into.
Natural Grocers by Vitamin Cottage Cash Conversion Cycle Calculation
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.
* 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.
Natural Grocers by Vitamin Cottage (NGVC) has a Cash Conversion Cycle of 19.43 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Natural Grocers by Vitamin Cottage and its competitors.
Is Natural Grocers by Vitamin Cottage's Cash Conversion Cycle too high?
Natural Grocers by Vitamin Cottage's current Cash Conversion Cycle is 19.43. The Retail - Defensive industry median Cash Conversion Cycle is 19.65. Natural Grocers by Vitamin Cottage's value of 19.43 is 1.1% below this industry median. Overall, Natural Grocers by Vitamin Cottage has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Natural Grocers by Vitamin Cottage's Cash Conversion Cycle compare to VLGEA and YSWY?
Natural Grocers by Vitamin Cottage's Cash Conversion Cycle of 19.43 can be compared against companies in the Retail - Defensive industry. The industry median Cash Conversion Cycle is 19.65. Natural Grocers by Vitamin Cottage's value of 19.43 is 1.1% 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 Retail - Defensive company?
The median Cash Conversion Cycle among Retail - Defensive companies is 19.65, based on 309 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. Natural Grocers by Vitamin Cottage's current Cash Conversion Cycle of 19.43 is 1.1% 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 Natural Grocers by Vitamin Cottage and its competitors. For the Retail - Defensive industry, the median Cash Conversion Cycle is 19.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Natural Grocers by Vitamin Cottage's current Cash Conversion Cycle is 19.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Natural Grocers by Vitamin Cottage stock overvalued right now?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage (NGVC) is currently considered Modestly Overvalued. The stock's GF Value™ is $27.27, compared to a current price of $32.69 — trading 19.9% above its estimated fair value. The current Cash Conversion Cycle is 19.43 and 1.1% below the Retail - Defensive industry median of 19.65. Natural Grocers by Vitamin Cottage's overall GF Score™ is 84/100 with 2 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 Natural Grocers by Vitamin Cottage (NGVC), the current Cash Conversion Cycle is 19.43 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 Natural Grocers by Vitamin Cottage (NGVC) Overvalued in 2026?
Based on GuruFocus' analysis, Natural Grocers by Vitamin Cottage stock appears to be overvalued.
The current stock price of $32.69 is trading 19.9% above its estimated GF Value™ of $27.27.
GuruFocus considers Natural Grocers by Vitamin Cottage to be Modestly Overvalued.
Key valuation signals for NGVC:
Cash Conversion Cycle: 19.43
GF Value™: $27.27 vs. price of $32.69 (19.9% above fair value)
Industry Position: 1.1% below the Retail - Defensive median
No single metric tells the full story. See the NGVC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Natural Grocers by Vitamin Cottage Business Description
Natural Grocers by Vitamin Cottage Inc operates natural and organic grocery and dietary supplement stores. It offers the following product categories: natural and organic food, dietary supplements, natural body care, household, pet care products, books, and handouts. The Company has a single reporting segment, natural and organic retail stores, through which business is conducted. The company generates the majority of its revenue from grocery products and dietary supplements, and the rest from other products.
84GF Score
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