Persimmon's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 13.15.
Persimmon's Days Inventory for the
six
months ended in Dec. 2025 was 421.96.
Persimmon's Days Payable for the
six
months ended in Dec. 2025 was 67.71.
Therefore, Persimmon's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 367.40.
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.
Persimmon Cash Conversion Cycle Related Terms
Persimmon Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Persimmon'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.
PSMMF vs DHI, PHM, LEN: Cash Conversion Cycle Comparison
For the Residential Construction subindustry, Persimmon'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.
Persimmon Cash Conversion Cycle vs Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Persimmon's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Persimmon'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.
Persimmon's Cash Conversion Cycle for the fiscal year that ended in Dec. 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.
Persimmon (PSMMF) has a Cash Conversion Cycle of 367.40 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Persimmon and its competitors.
Is Persimmon's Cash Conversion Cycle too high?
Persimmon's current Cash Conversion Cycle is 367.40. The Homebuilding & Construction industry median Cash Conversion Cycle is 273.39. Persimmon's value of 367.40 is 34.4% above this industry median. Overall, Persimmon has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Persimmon's Cash Conversion Cycle compare to DHI and PHM?
Persimmon's Cash Conversion Cycle of 367.40 can be compared against companies in the Homebuilding & Construction industry. The industry median Cash Conversion Cycle is 273.39. Persimmon's value of 367.40 is 34.4% 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 a Homebuilding & Construction company?
The median Cash Conversion Cycle among Homebuilding & Construction companies is 273.39, based on 91 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. Persimmon's current Cash Conversion Cycle of 367.40 is 34.4% 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 Persimmon and its competitors. For the Homebuilding & Construction industry, the median Cash Conversion Cycle is 273.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Persimmon's current Cash Conversion Cycle is 367.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Persimmon stock overvalued right now?
Persimmon (PSMMF) has a current Cash Conversion Cycle of 367.40. The stock's GF Value™ is $21.60, compared to a current price of $15.26 — trading 29.3% below its estimated fair value. The current Cash Conversion Cycle is 367.40 and 34.4% above the Homebuilding & Construction industry median of 273.39. Persimmon's overall GF Score™ is 79/100 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 Persimmon (PSMMF), the current Cash Conversion Cycle is 367.40 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 Persimmon (PSMMF) Overvalued in 2026?
Based on GuruFocus' analysis, Persimmon stock appears to be undervalued.
The current stock price of $15.26 is trading 29.3% below its estimated GF Value™ of $21.60.
Key valuation signals for PSMMF:
Cash Conversion Cycle: 367.40
GF Value™: $21.60 vs. price of $15.26 (29.3% below fair value)
Industry Position: 34.4% above the Homebuilding & Construction median
No single metric tells the full story. See the PSMMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Persimmon is one of the UK's largest residential property developers by revenue and dwelling completions, marketing homes under its three brands: Persimmon Homes, Charles Church, and Westbury Partnerships. Persimmon distinguishes itself from peers by operating in the lower-priced segment of the new-build market; Persimmon Homes' average selling price in 2024 was 20% below the UK new-build national average. Like peers, Persimmon has traditionally operated in the land development, construction, and sales and marketing segments of the residential property development value chain. However, unlike peers, in recent years, Persimmon has begun manufacturing its own bricks, tiles, and timber frames, aiming to secure the supply and quality of key materials and manage build cost inflation.
79GF 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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