Puhui Wealth Investment Management Co (OTCPK:PHCFF) 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.
Puhui Wealth Investment Management Co Cash Conversion Cycle Related Terms
Puhui Wealth Investment Management Co 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.
Puhui Wealth Investment Management Co Cash Conversion Cycle Chart
PHCFF vs FXBY, TLGN, FOMC: Cash Conversion Cycle Comparison
For the Asset Management subindustry, Puhui Wealth Investment Management Co'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.
Puhui Wealth Investment Management Co Cash Conversion Cycle vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Puhui Wealth Investment Management Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Puhui Wealth Investment Management Co's Cash Conversion Cycle falls into.
Puhui Wealth Investment Management Co 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.
Puhui Wealth Investment Management Co (PHCFF) has a Cash Conversion Cycle of 20.64 as of Dec. 2021. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Puhui Wealth Investment Management Co and its competitors.
Is Puhui Wealth Investment Management Co's Cash Conversion Cycle too high?
Puhui Wealth Investment Management Co's current Cash Conversion Cycle is 20.64. The Asset Management industry median Cash Conversion Cycle is 4.78. Puhui Wealth Investment Management Co's value of 20.64 is 331.8% above this industry median. Overall, Puhui Wealth Investment Management Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Puhui Wealth Investment Management Co's Cash Conversion Cycle compare to FXBY and TLGN?
Puhui Wealth Investment Management Co's Cash Conversion Cycle of 20.64 can be compared against companies in the Asset Management industry. The industry median Cash Conversion Cycle is 4.78. Puhui Wealth Investment Management Co's value of 20.64 is 331.8% 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 Asset Management company?
The median Cash Conversion Cycle among Asset Management companies is 4.78, based on 603 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. Puhui Wealth Investment Management Co's current Cash Conversion Cycle of 20.64 is 331.8% 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 Puhui Wealth Investment Management Co and its competitors. For the Asset Management industry, the median Cash Conversion Cycle is 4.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Puhui Wealth Investment Management Co's current Cash Conversion Cycle is 20.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Puhui Wealth Investment Management Co stock overvalued right now?
Puhui Wealth Investment Management Co (PHCFF) has a current Cash Conversion Cycle of 20.64. The current Cash Conversion Cycle is 20.64 and 331.8% above the Asset Management industry median of 4.78. Puhui Wealth Investment Management Co's overall GF Score™ is 12/100. 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 Puhui Wealth Investment Management Co (PHCFF), the current Cash Conversion Cycle is 20.64 as of Dec. 2021. 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.
Puhui Wealth Investment Management Co Business Description
Puhui Wealth Investment Management Co Ltd is a third-party wealth management service provider. The company is focused on the marketing of financial products, and managing funds for individuals and corporate clients. It generates its revenue from the commissions and recurring service fees generated through wealth management product-related services.
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