Forge Auto International's Days Sales Outstanding for the
six
months ended in Mar. 2025 was 39.24.
Forge Auto International's Days Inventory for the
six
months ended in Mar. 2025 was 124.33.
Forge Auto International's Days Payable for the
six
months ended in Mar. 2025 was 79.58.
Therefore, Forge Auto International's Cash Conversion Cycle (CCC) for the
six
months ended in Mar. 2025 was 83.99.
Forge Auto International (NSE:FORGEAUTO) 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.
Forge Auto International Cash Conversion Cycle Related Terms
Forge Auto International Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Forge Auto International'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.
Forge Auto International Cash Conversion Cycle Chart
Forge Auto International Annual Data
Trend
Mar22
Mar23
Mar24
Mar25
Cash Conversion Cycle
56.12
46.52
60.35
83.99
Forge Auto International Semi-Annual Data
Mar22
Mar23
Mar24
Mar25
Cash Conversion Cycle
56.12
46.52
60.35
83.99
NSE:FORGEAUTO vs ORLY, AZO: Cash Conversion Cycle Comparison
For the Auto Parts subindustry, Forge Auto International'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.
Forge Auto International Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Forge Auto International's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Forge Auto International's Cash Conversion Cycle falls into.
Forge Auto International 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.
Forge Auto International's Cash Conversion Cycle for the fiscal year that ended in Mar. 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.
Forge Auto International (NSE:FORGEAUTO) has a Cash Conversion Cycle of 83.99 as of Mar. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Forge Auto International and its competitors.
Is Forge Auto International's Cash Conversion Cycle too high?
Forge Auto International's current Cash Conversion Cycle is 83.99. The Vehicles & Parts industry median Cash Conversion Cycle is 67.19. Forge Auto International's value of 83.99 is 25% above this industry median. Overall, Forge Auto International has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Forge Auto International's Cash Conversion Cycle compare to ORLY and AZO?
Forge Auto International's Cash Conversion Cycle of 83.99 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.19. Forge Auto International's value of 83.99 is 25% 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 67.19, based on 1,321 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. Forge Auto International's current Cash Conversion Cycle of 83.99 is 25% 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 Forge Auto International and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forge Auto International's current Cash Conversion Cycle is 83.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forge Auto International stock overvalued right now?
Forge Auto International (NSE:FORGEAUTO) has a current Cash Conversion Cycle of 83.99. The current Cash Conversion Cycle is 83.99 and 25% above the Vehicles & Parts industry median of 67.19. Forge Auto International's overall GF Score™ is 16/100 with 3 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 Forge Auto International (NSE:FORGEAUTO), the current Cash Conversion Cycle is 83.99 as of Mar. 2025. 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.
Forge Auto International Ltd is an engineering company engaged in forging and manufacturing of complex and safety-critical, forged and precision machined components such as big rings, small rings, big ball studs, gear blank with a broach, stub axle assembly, flange yoke 325 HS, catering to different industry sectors like auto industry including automobiles, tractors, railways etc. and non-auto sectors like agriculture parts, hydraulic parts, striking tools etc. It serves its customers comprising of domestic and global original equipment manufacturers (OEMs) engaged in manufacturing for both the automotive sector and other nonautomotive sector, used across industries by a diversified base of customers.
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