Solution Dynamics's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 37.71.
Solution Dynamics's Days Inventory for the
six
months ended in Dec. 2025 was 6.05.
Solution Dynamics's Days Payable for the
six
months ended in Dec. 2025 was 50.65.
Therefore, Solution Dynamics's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was -6.89.
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.
Solution Dynamics Cash Conversion Cycle Related Terms
Solution Dynamics Cash Conversion Cycle Historical Data
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The historical data trend for Solution Dynamics'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.
NZSE:SDL vs UBER, SHOP, CRM: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Solution Dynamics'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.
Solution Dynamics Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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.
Solution Dynamics's Cash Conversion Cycle for the fiscal year that ended in Jun. 2025 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.
Solution Dynamics (NZSE:SDL) has a Cash Conversion Cycle of -6.89 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Solution Dynamics and its competitors.
Is Solution Dynamics' Cash Conversion Cycle too high?
Solution Dynamics' current Cash Conversion Cycle is -6.89. Overall, Solution Dynamics has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Cash Conversion Cycle compare to UBER and SHOP?
Solution Dynamics' Cash Conversion Cycle of -6.89 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.20. 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.20, based on 2,798 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 Solution Dynamics and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solution Dynamics's current Cash Conversion Cycle is -6.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.59 — trading 40.9% below its estimated fair value. The current Cash Conversion Cycle is -6.89. Solution Dynamics' overall GF Score™ is 59/100 with 3 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 Solution Dynamics (NZSE:SDL), the current Cash Conversion Cycle is -6.89 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.59 is trading 40.9% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
Cash Conversion Cycle: -6.89
GF Value™: NZ$0.99 vs. price of NZ$0.59 (40.9% below fair value)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
59GF 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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