Indian Railway Catering And Tourism (NSE:IRCTC) 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.
Indian Railway Catering And Tourism Cash Conversion Cycle Related Terms
Indian Railway Catering And Tourism 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.
Indian Railway Catering And Tourism Cash Conversion Cycle Chart
NSE:IRCTC vs BKNG, ABNB, RCL: Cash Conversion Cycle Comparison
For the Travel Services subindustry, Indian Railway Catering And Tourism'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.
Indian Railway Catering And Tourism Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Indian Railway Catering And Tourism's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Indian Railway Catering And Tourism's Cash Conversion Cycle falls into.
Indian Railway Catering And Tourism 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.
Indian Railway Catering And Tourism (NSE:IRCTC) has a Cash Conversion Cycle of 46.46 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Indian Railway Catering And Tourism and its competitors.
Is Indian Railway Catering And Tourism's Cash Conversion Cycle too high?
Indian Railway Catering And Tourism's current Cash Conversion Cycle is 46.46. The Travel & Leisure industry median Cash Conversion Cycle is 10.23. Indian Railway Catering And Tourism's value of 46.46 is 354.2% above this industry median. Overall, Indian Railway Catering And Tourism has a GF Score™ of 92/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Indian Railway Catering And Tourism's Cash Conversion Cycle compare to BKNG and ABNB?
Indian Railway Catering And Tourism's Cash Conversion Cycle of 46.46 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.23. Indian Railway Catering And Tourism's value of 46.46 is 354.2% 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 Travel & Leisure company?
The median Cash Conversion Cycle among Travel & Leisure companies is 10.23, based on 841 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. Indian Railway Catering And Tourism's current Cash Conversion Cycle of 46.46 is 354.2% 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 Indian Railway Catering And Tourism and its competitors. For the Travel & Leisure industry, the median Cash Conversion Cycle is 10.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Indian Railway Catering And Tourism's current Cash Conversion Cycle is 46.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Indian Railway Catering And Tourism stock overvalued right now?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism (NSE:IRCTC) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹949.28, compared to a current price of ₹509.95 — trading 46.3% below its estimated fair value. The current Cash Conversion Cycle is 46.46 and 354.2% above the Travel & Leisure industry median of 10.23. Indian Railway Catering And Tourism's overall GF Score™ is 92/100 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 Indian Railway Catering And Tourism (NSE:IRCTC), the current Cash Conversion Cycle is 46.46 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 Indian Railway Catering And Tourism (NSE:IRCTC) Overvalued in 2026?
Based on GuruFocus' analysis, Indian Railway Catering And Tourism stock appears to be undervalued.
The current stock price of ₹509.95 is trading 46.3% below its estimated GF Value™ of ₹949.28.
GuruFocus considers Indian Railway Catering And Tourism to be Significantly Undervalued.
Key valuation signals for NSE:IRCTC:
Cash Conversion Cycle: 46.46
GF Value™: ₹949.28 vs. price of ₹509.95 (46.3% below fair value)
Industry Position: 354.2% above the Travel & Leisure median
No single metric tells the full story. See the NSE:IRCTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Indian Railway Catering And Tourism Business Description
Indian Railway Catering And Tourism Corp Ltd is engaged in catering and hospitality services at stations, on trains, and other locations, and to promote domestic and international tourism through the development of budget hotels, special tour packages, information, and commercial publicity and world-wide reservation systems. The company's segments are Catering, Rail Neer, Internet Ticketing, and Tourism & Train Operation. A vast majority of its revenues are derived from the Catering business.
92GF Score
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