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.
Vaidyane Ayurved Laboratories Cash Conversion Cycle Related Terms
Vaidyane Ayurved Laboratories 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.
NSE:MADHAVBAUG vs ZTS, UTHR: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Vaidyane Ayurved Laboratories'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.
Vaidyane Ayurved Laboratories Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Vaidyane Ayurved Laboratories's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Vaidyane Ayurved Laboratories'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.
* 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.
Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) has a Cash Conversion Cycle of -12.02 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Vaidyane Ayurved Laboratories and its competitors.
Is Vaidyane Ayurved Laboratories' Cash Conversion Cycle too high?
Vaidyane Ayurved Laboratories' current Cash Conversion Cycle is -12.02. Overall, Vaidyane Ayurved Laboratories has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vaidyane Ayurved Laboratories' Cash Conversion Cycle compare to ZTS and UTHR?
Vaidyane Ayurved Laboratories' Cash Conversion Cycle of -12.02 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.92. 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.92, based on 955 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. 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 Vaidyane Ayurved Laboratories and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vaidyane Ayurved Laboratories's current Cash Conversion Cycle is -12.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vaidyane Ayurved Laboratories stock overvalued right now?
Based on GuruFocus' analysis, Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹228.12, compared to a current price of ₹183.90 — trading 19.4% below its estimated fair value. The current Cash Conversion Cycle is -12.02. Vaidyane Ayurved Laboratories' overall GF Score™ is 84/100 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 Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG), the current Cash Conversion Cycle is -12.02 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 Vaidyane Ayurved Laboratories (NSE:MADHAVBAUG) Overvalued in 2026?
Based on GuruFocus' analysis, Vaidyane Ayurved Laboratories stock appears to be undervalued.
The current stock price of ₹183.90 is trading 19.4% below its estimated GF Value™ of ₹228.12.
GuruFocus considers Vaidyane Ayurved Laboratories to be Modestly Undervalued.
Key valuation signals for NSE:MADHAVBAUG:
Cash Conversion Cycle: -12.02
GF Value™: ₹228.12 vs. price of ₹183.90 (19.4% below fair value)
No single metric tells the full story. See the NSE:MADHAVBAUG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vaidyane Ayurved Laboratories Business Description
Vaidya Sane Ayurved Laboratories Ltd is a medical service institution. The company engaged in research and development in Ayurvedic Medicines and the sale of Ayurvedic medicines & products through its various franchises and own clinics. The Company is also engaged in providing Ayurved medical professional services across its various clinics, including panchkarma and other Ayurvedic treatments through the running of an Ayurvedic Hospital. The company mainly offers treatment for health disease reversal, diabetes reversal, BP management, obesity management, and knee pain relief. The company's business is divided into three segments, i.e., Hospital Activity, Sale of Product, and Common. It derives maximum revenue from the sale of Products.
84GF Score
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