Varroc Engineering's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 28.3.
Varroc Engineering's Days Inventory for the
three
months ended in Mar. 2026 was 56.
Varroc Engineering's Days Payable for the
three
months ended in Mar. 2026 was 91.34.
Therefore, Varroc Engineering's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was -7.04.
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.
Varroc Engineering Cash Conversion Cycle Related Terms
Varroc Engineering Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Varroc Engineering'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:VARROC vs ORLY, AZO: Cash Conversion Cycle Comparison
For the Auto Parts subindustry, Varroc Engineering'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.
Varroc Engineering Cash Conversion Cycle vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Varroc Engineering's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Varroc Engineering'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.
Varroc Engineering'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.
Varroc Engineering (NSE:VARROC) has a Cash Conversion Cycle of -7.04 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Varroc Engineering and its competitors.
Is Varroc Engineering's Cash Conversion Cycle too high?
Varroc Engineering's current Cash Conversion Cycle is -7.04. Overall, Varroc Engineering has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Varroc Engineering's Cash Conversion Cycle compare to ORLY and AZO?
Varroc Engineering's Cash Conversion Cycle of -7.04 can be compared against companies in the Vehicles & Parts industry. The industry median Cash Conversion Cycle is 67.26. 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 67.26, based on 1,323 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 Varroc Engineering and its competitors. For the Vehicles & Parts industry, the median Cash Conversion Cycle is 67.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Varroc Engineering's current Cash Conversion Cycle is -7.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Varroc Engineering stock overvalued right now?
Based on GuruFocus' analysis, Varroc Engineering (NSE:VARROC) is currently considered Fairly Valued. The stock's GF Value™ is ₹639.31, compared to a current price of ₹636.75 — trading 0.4% below its estimated fair value. The current Cash Conversion Cycle is -7.04. Varroc Engineering's overall GF Score™ is 81/100 with 5 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 Varroc Engineering (NSE:VARROC), the current Cash Conversion Cycle is -7.04 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 Varroc Engineering (NSE:VARROC) Overvalued in 2026?
Based on GuruFocus' analysis, Varroc Engineering stock appears to be undervalued.
The current stock price of ₹636.75 is trading 0.4% below its estimated GF Value™ of ₹639.31.
GuruFocus considers Varroc Engineering to be Fairly Valued.
Key valuation signals for NSE:VARROC:
Cash Conversion Cycle: -7.04
GF Value™: ₹639.31 vs. price of ₹636.75 (0.4% below fair value)
No single metric tells the full story. See the NSE:VARROC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Varroc Engineering Ltd is an India based company engaged in manufacturing and supplying components and subassemblies for automobile, consumer durable, and white goods industries. The company's operating segment includes Automotive and Others. It generates maximum revenue from the Automotive segment. The company also designs, manufactures, and supply exterior lighting systems, plastic and polymer components, electricals-electronics components, and precision metallic components to a passenger car, commercial vehicle, two-wheeler, three-wheeler and off-highway vehicle. Geographically, it derives a majority of revenue from India and also has a presence in the Asia Pacific; North America, Europe and Other Countries.
81GF 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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