Sanco Industries (NSE:SANCO) Cash Conversion Cycle: 590.83 (As of Mar. 2020)

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NSE:SANCO Sanco Industries Ltd NSE:SANCO
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What is Sanco Industries Cash Conversion Cycle?

Sanco Industries NSE:SANCO 4 Cash Conversion Cycle is 590.83 as of Mar. 2020. GuruFocus rates NSE:SANCO with a GF Score™ of 4/100.

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Sanco Industries's Days Sales Outstanding for the six months ended in Mar. 2020 was 394.76.
Sanco Industries's Days Inventory for the six months ended in Mar. 2020 was 448.48.
Sanco Industries's Days Payable for the six months ended in Mar. 2020 was 252.41.
Therefore, Sanco Industries's Cash Conversion Cycle (CCC) for the six months ended in Mar. 2020 was 590.83.


Sanco Industries  (NSE:SANCO) 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.


Sanco Industries Cash Conversion Cycle Related Terms


Sanco Industries Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Sanco Industries'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.

Sanco Industries Cash Conversion Cycle Chart

Sanco Industries Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Cash Conversion Cycle
Get a 7-Day Free Trial 37.18 154.67 114.99 192.25 590.83

Sanco Industries Semi-Annual Data
Mar15 Mar16 Mar17 Mar18 Mar19 Mar20
Cash Conversion Cycle Get a 7-Day Free Trial 37.18 154.67 114.99 192.25 590.83

NSE:SANCO vs HUBB: Cash Conversion Cycle Comparison

For the Electrical Equipment & Parts subindustry, Sanco Industries'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.


Sanco Industries Cash Conversion Cycle vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Sanco Industries's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Sanco Industries's Cash Conversion Cycle falls into.


NSE:SANCO
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Sanco Industries Ltd NSE:SANCO
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Sanco Industries 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.

Sanco Industries's Cash Conversion Cycle for the fiscal year that ended in Mar. 2020 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=394.76+448.48-252.41
=590.83

Sanco Industries's Cash Conversion Cycle for the quarter that ended in Mar. 2020 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=394.76+448.48-252.41
=590.83

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of 590.83 mean?
Sanco Industries (NSE:SANCO) has a Cash Conversion Cycle of 590.83 as of Mar. 2020. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sanco Industries and its competitors.
Is Sanco Industries' Cash Conversion Cycle too high?
Sanco Industries' current Cash Conversion Cycle is 590.83. The Industrial Products industry median Cash Conversion Cycle is 122.24. Sanco Industries' value of 590.83 is 383.4% above this industry median. Overall, Sanco Industries has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does Sanco Industries' Cash Conversion Cycle compare to HUBB?
Sanco Industries' Cash Conversion Cycle of 590.83 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.24. Sanco Industries' value of 590.83 is 383.4% 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 an Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.24, based on 3,034 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. Sanco Industries's current Cash Conversion Cycle of 590.83 is 383.4% 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 Sanco Industries and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanco Industries's current Cash Conversion Cycle is 590.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanco Industries stock overvalued right now?
Sanco Industries (NSE:SANCO) has a current Cash Conversion Cycle of 590.83. The current Cash Conversion Cycle is 590.83 and 383.4% above the Industrial Products industry median of 122.24. Sanco Industries' overall GF Score™ is 4/100. 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 Sanco Industries (NSE:SANCO), the current Cash Conversion Cycle is 590.83 as of Mar. 2020. 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.

Sanco Industries Business Description

Address D - 161, Surajmal Vihar, Near Karkardooma Court, New Delhi, IND, 110092
Sanco Industries Ltd is an India-based holding company. It is engaged in the business of PVC Pipes, PVC Wires and Cables, and Copper Wire Rod. It is engaged in manufacturing and trading of polyvinyl chloride (PVC) resin, PVC compound, PVC profiles, light-emitting diode (LED) lights, and chemical. The company operates in one business segment namely, Manufacturing business. It offers various products, which comprise PVC conduit pipes, PVC casings, and cappings, PVC insulated wires, calcium carbonate, and PVC insulation tape.
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