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Cummins India's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 84.82.
Cummins India's Days Inventory for the
three
months ended in Mar. 2026 was 55.36.
Cummins India's Days Payable for the
three
months ended in Mar. 2026 was 78.22.
Therefore, Cummins India's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 61.96.
Cummins India (NSE:CUMMINSIND) 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.
Cummins India Cash Conversion Cycle Related Terms
Cummins India Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Cummins India'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.
NSE:CUMMINSIND vs GEV, ETN, PH: Cash Conversion Cycle Comparison
For the Specialty Industrial Machinery subindustry, Cummins India'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.
Cummins India Cash Conversion Cycle vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Cummins India's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Cummins India'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.
Cummins India'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.
Cummins India (NSE:CUMMINSIND) has a Cash Conversion Cycle of 61.96 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Cummins India and its competitors.
Is Cummins India's Cash Conversion Cycle too high?
Cummins India's current Cash Conversion Cycle is 61.96. The Industrial Products industry median Cash Conversion Cycle is 122.29. Cummins India's value of 61.96 is 49.3% below this industry median. Overall, Cummins India has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cummins India's Cash Conversion Cycle compare to GEV and ETN?
Cummins India's Cash Conversion Cycle of 61.96 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.29. Cummins India's value of 61.96 is 49.3% 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 an Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.29, based on 3,032 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. Cummins India's current Cash Conversion Cycle of 61.96 is 49.3% 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 Cummins India and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cummins India's current Cash Conversion Cycle is 61.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cummins India stock overvalued right now?
Based on GuruFocus' analysis, Cummins India (NSE:CUMMINSIND) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹4,378.14, compared to a current price of ₹5,448.00 — trading 24.4% above its estimated fair value. The current Cash Conversion Cycle is 61.96 and 49.3% below the Industrial Products industry median of 122.29. Cummins India'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 Cummins India (NSE:CUMMINSIND), the current Cash Conversion Cycle is 61.96 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 Cummins India (NSE:CUMMINSIND) Overvalued in 2026?
Based on GuruFocus' analysis, Cummins India stock appears to be overvalued.
The current stock price of ₹5,448.00 is trading 24.4% above its estimated GF Value™ of ₹4,378.14.
GuruFocus considers Cummins India to be Modestly Overvalued.
Key valuation signals for NSE:CUMMINSIND:
Cash Conversion Cycle: 61.96
GF Value™: ₹4,378.14 vs. price of ₹5,448.00 (24.4% above fair value)
Industry Position: 49.3% below the Industrial Products median
No single metric tells the full story. See the NSE:CUMMINSIND stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cummins India Ltd designs and manufactures service engines and engages in allied activities. The company produces fuel systems, air handling, filtration, emission solutions, and electrical power generation systems in facilities across India. The company's business units are; Engines, Power Systems, Components, and Distribution. Its operating segments are; Engines and Lubes. Maximum revenue is generated from its Engines segment which manufactures engines from 60 HP for low, medium, and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment industry spanning construction and compressor.
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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