Millenniumpthorne Hotels New Zealand (NZSE:MCK) 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.
Millenniumpthorne Hotels New Zealand Cash Conversion Cycle Related Terms
Millenniumpthorne Hotels New Zealand 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.
Millenniumpthorne Hotels New Zealand Cash Conversion Cycle Chart
NZSE:MCK vs MAR, HLT, H: Cash Conversion Cycle Comparison
For the Lodging subindustry, Millenniumpthorne Hotels New Zealand'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.
Millenniumpthorne Hotels New Zealand Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Millenniumpthorne Hotels New Zealand's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Millenniumpthorne Hotels New Zealand's Cash Conversion Cycle falls into.
Millenniumpthorne Hotels New Zealand 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.
Millenniumpthorne Hotels New Zealand (NZSE:MCK) has a Cash Conversion Cycle of 6.56 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Millenniumpthorne Hotels New Zealand and its competitors.
Is Millenniumpthorne Hotels New Zealand's Cash Conversion Cycle too high?
Millenniumpthorne Hotels New Zealand's current Cash Conversion Cycle is 6.56. The Travel & Leisure industry median Cash Conversion Cycle is 10.23. Millenniumpthorne Hotels New Zealand's value of 6.56 is 35.9% below this industry median. Overall, Millenniumpthorne Hotels New Zealand has a GF Score™ of 68/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Millenniumpthorne Hotels New Zealand's Cash Conversion Cycle compare to MAR and HLT?
Millenniumpthorne Hotels New Zealand's Cash Conversion Cycle of 6.56 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.23. Millenniumpthorne Hotels New Zealand's value of 6.56 is 35.9% below 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. Millenniumpthorne Hotels New Zealand's current Cash Conversion Cycle of 6.56 is 35.9% below 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 Millenniumpthorne Hotels New Zealand 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. Millenniumpthorne Hotels New Zealand's current Cash Conversion Cycle is 6.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Millenniumpthorne Hotels New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand (NZSE:MCK) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$2.68, compared to a current price of NZ$3.29 — trading 22.8% above its estimated fair value. The current Cash Conversion Cycle is 6.56 and 35.9% below the Travel & Leisure industry median of 10.23. Millenniumpthorne Hotels New Zealand's overall GF Score™ is 68/100 with 9 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK), the current Cash Conversion Cycle is 6.56 as of Dec. 2025. 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 Millenniumpthorne Hotels New Zealand (NZSE:MCK) Overvalued in 2026?
Based on GuruFocus' analysis, Millenniumpthorne Hotels New Zealand stock appears to be overvalued.
The current stock price of NZ$3.29 is trading 22.8% above its estimated GF Value™ of NZ$2.68.
GuruFocus considers Millenniumpthorne Hotels New Zealand to be Modestly Overvalued.
Key valuation signals for NZSE:MCK:
Cash Conversion Cycle: 6.56
GF Value™: NZ$2.68 vs. price of NZ$3.29 (22.8% above fair value)
Industry Position: 35.9% below the Travel & Leisure median
No single metric tells the full story. See the NZSE:MCK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Millenniumpthorne Hotels New Zealand Business Description
Millennium & Copthorne Hotels New Zealand Ltd is engaged in the ownership and operation of hotels in New Zealand. The Group is also involved in the development and sale of residential land in New Zealand; investment properties comprising commercial warehousing and retail shops in New Zealand; and the development and sale of residential units in Australia. Its operating segments are: Hotel operations, Residential land development, Investment property, and Residential and commercial property development. Maximum revenue is generated from the Hotel operations segment, which includes income from the ownership and management of hotels. Geographically, the Group generates maximum revenue from New Zealand, and the rest from Australia.
68GF Score
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