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Precision Optics's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 59.98.
Precision Optics's Days Inventory for the
three
months ended in Mar. 2026 was 54.64.
Precision Optics's Days Payable for the
three
months ended in Mar. 2026 was 84.25.
Therefore, Precision Optics's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 30.37.
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.
Precision Optics Cash Conversion Cycle Related Terms
Precision Optics Cash Conversion Cycle Historical Data
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The historical data trend for Precision Optics'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.
POCI vs DXR, NEPH, MLSS: Cash Conversion Cycle Comparison
For the Medical Instruments & Supplies subindustry, Precision Optics'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.
Precision Optics Cash Conversion Cycle vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Precision Optics's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Precision Optics'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.
Precision Optics'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.
Precision Optics (POCI) has a Cash Conversion Cycle of 30.37 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Precision Optics and its competitors.
Is Precision Optics' Cash Conversion Cycle too high?
Precision Optics' current Cash Conversion Cycle is 30.37. The Medical Devices & Instruments industry median Cash Conversion Cycle is 158.14. Precision Optics' value of 30.37 is 80.8% below this industry median. Overall, Precision Optics has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Precision Optics' Cash Conversion Cycle compare to DXR and NEPH?
Precision Optics' Cash Conversion Cycle of 30.37 can be compared against companies in the Medical Devices & Instruments industry. The industry median Cash Conversion Cycle is 158.14. Precision Optics' value of 30.37 is 80.8% 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 Medical Devices & Instruments company?
The median Cash Conversion Cycle among Medical Devices & Instruments companies is 158.14, based on 817 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. Precision Optics's current Cash Conversion Cycle of 30.37 is 80.8% 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 Precision Optics and its competitors. For the Medical Devices & Instruments industry, the median Cash Conversion Cycle is 158.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Optics's current Cash Conversion Cycle is 30.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Optics stock overvalued right now?
Based on GuruFocus' analysis, Precision Optics (POCI) is currently considered Modestly Undervalued. The stock's GF Value™ is $6.34, compared to a current price of $4.45 — trading 29.8% below its estimated fair value. The current Cash Conversion Cycle is 30.37 and 80.8% below the Medical Devices & Instruments industry median of 158.14. Precision Optics' overall GF Score™ is 73/100 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 Precision Optics (POCI), the current Cash Conversion Cycle is 30.37 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 Precision Optics (POCI) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Optics stock appears to be undervalued.
The current stock price of $4.45 is trading 29.8% below its estimated GF Value™ of $6.34.
GuruFocus considers Precision Optics to be Modestly Undervalued.
Key valuation signals for POCI:
Cash Conversion Cycle: 30.37
GF Value™: $6.34 vs. price of $4.45 (29.8% below fair value)
Industry Position: 80.8% below the Medical Devices & Instruments median
No single metric tells the full story. See the POCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Optics Corp Inc is engaged in designing, developing, and manufacturing advanced optical instruments. It manufactures medical products such as endoscopes and endocouplers which incorporate various optical technologies for use in a variety of minimally invasive surgical and diagnostic procedures. The company also produces endoscopes for various applications as well as designs and manufactures custom optical medical devices to satisfy customers' specific requirements. In addition, the company manufactures and sells components and assemblies specially designed for industrial and military use. The company earns the majority of its revenue from the United States.
73GF Score
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