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.
Zenith Steel Pipes & Industries Cash Conversion Cycle Related Terms
Zenith Steel Pipes & Industries 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:ZENITHSTL vs NUE, STLD, RS: Cash Conversion Cycle Comparison
For the Steel subindustry, Zenith Steel Pipes & 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.
Zenith Steel Pipes & Industries Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, Zenith Steel Pipes & Industries's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Zenith Steel Pipes & Industries'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.
What does a Cash Conversion Cycle of -1,146.95 mean?
Zenith Steel Pipes & Industries (NSE:ZENITHSTL) has a Cash Conversion Cycle of -1,146.95 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Zenith Steel Pipes & Industries and its competitors.
Is Zenith Steel Pipes & Industries' Cash Conversion Cycle too high?
Zenith Steel Pipes & Industries' current Cash Conversion Cycle is -1,146.95. Overall, Zenith Steel Pipes & Industries has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zenith Steel Pipes & Industries' Cash Conversion Cycle compare to NUE and STLD?
Zenith Steel Pipes & Industries' Cash Conversion Cycle of -1,146.95 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 94.32. 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 Steel company?
The median Cash Conversion Cycle among Steel companies is 94.32, based on 609 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 Zenith Steel Pipes & Industries and its competitors. For the Steel industry, the median Cash Conversion Cycle is 94.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zenith Steel Pipes & Industries's current Cash Conversion Cycle is -1,146.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zenith Steel Pipes & Industries stock overvalued right now?
Based on GuruFocus' analysis, Zenith Steel Pipes & Industries (NSE:ZENITHSTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹3.32, compared to a current price of ₹5.40 — trading 62.7% above its estimated fair value. The current Cash Conversion Cycle is -1,146.95. Zenith Steel Pipes & Industries' overall GF Score™ is 39/100 with 7 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 Zenith Steel Pipes & Industries (NSE:ZENITHSTL), the current Cash Conversion Cycle is -1,146.95 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 Zenith Steel Pipes & Industries (NSE:ZENITHSTL) Overvalued in 2026?
Based on GuruFocus' analysis, Zenith Steel Pipes & Industries stock appears to be overvalued.
The current stock price of ₹5.40 is trading 62.7% above its estimated GF Value™ of ₹3.32.
GuruFocus considers Zenith Steel Pipes & Industries to be Significantly Overvalued.
Key valuation signals for NSE:ZENITHSTL:
Cash Conversion Cycle: -1,146.95
GF Value™: ₹3.32 vs. price of ₹5.40 (62.7% above fair value)
No single metric tells the full story. See the NSE:ZENITHSTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zenith Steel Pipes & Industries Business Description
Zenith Steel Pipes & Industries Ltd is a manufacturer of steel pipes in India. Its product portfolio includes Electric Resistance Welded Black pipes, Electric Resistance Welded GI pipes, HSAW Pipes, and others. The vast majority of its revenue comes from India.
39GF Score
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