Red Cat Holdings's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 108.31.
Red Cat Holdings's Days Inventory for the
three
months ended in Mar. 2026 was 249.92.
Red Cat Holdings's Days Payable for the
three
months ended in Mar. 2026 was 43.45.
Therefore, Red Cat Holdings's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 314.78.
Red Cat Holdings (NAS:RCAT) 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.
Red Cat Holdings Cash Conversion Cycle Related Terms
Red Cat Holdings Cash Conversion Cycle Historical Data
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The historical data trend for Red Cat Holdings'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.
RCAT vs DCO, AVEX, VVX: Cash Conversion Cycle Comparison
For the Aerospace & Defense subindustry, Red Cat Holdings'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.
Red Cat Holdings Cash Conversion Cycle vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Red Cat Holdings's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Red Cat Holdings's Cash Conversion Cycle falls into.
Red Cat Holdings 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.
Red Cat Holdings'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.
Red Cat Holdings (RCAT) has a Cash Conversion Cycle of 314.78 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Red Cat Holdings and its competitors.
Is Red Cat Holdings' Cash Conversion Cycle too high?
Red Cat Holdings' current Cash Conversion Cycle is 314.78. The Aerospace & Defense industry median Cash Conversion Cycle is 137.38. Red Cat Holdings' value of 314.78 is 129.1% above this industry median. Overall, Red Cat Holdings has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Red Cat Holdings' Cash Conversion Cycle compare to DCO and AVEX?
Red Cat Holdings' Cash Conversion Cycle of 314.78 can be compared against companies in the Aerospace & Defense industry. The industry median Cash Conversion Cycle is 137.38. Red Cat Holdings' value of 314.78 is 129.1% 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 Aerospace & Defense company?
The median Cash Conversion Cycle among Aerospace & Defense companies is 137.38, based on 347 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. Red Cat Holdings's current Cash Conversion Cycle of 314.78 is 129.1% 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 Red Cat Holdings and its competitors. For the Aerospace & Defense industry, the median Cash Conversion Cycle is 137.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Red Cat Holdings's current Cash Conversion Cycle is 314.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Red Cat Holdings stock overvalued right now?
Based on GuruFocus' analysis, Red Cat Holdings (RCAT) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.92, compared to a current price of $9.28 — trading 17.2% above its estimated fair value. The current Cash Conversion Cycle is 314.78 and 129.1% above the Aerospace & Defense industry median of 137.38. Red Cat Holdings' overall GF Score™ is 81/100 with 4 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 Red Cat Holdings (RCAT), the current Cash Conversion Cycle is 314.78 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 Red Cat Holdings (RCAT) Overvalued in 2026?
Based on GuruFocus' analysis, Red Cat Holdings stock appears to be overvalued.
The current stock price of $9.28 is trading 17.2% above its estimated GF Value™ of $7.92.
GuruFocus considers Red Cat Holdings to be Modestly Overvalued.
Key valuation signals for RCAT:
Cash Conversion Cycle: 314.78
GF Value™: $7.92 vs. price of $9.28 (17.2% above fair value)
Industry Position: 129.1% above the Aerospace & Defense median
No single metric tells the full story. See the RCAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Red Cat Holdings Inc is a drone technology company integrating robotic hardware and software for military, government, and commercial operations. Its suite of solutions includes the Arachnid family of ISR and precision strike drones, which includes the Black Widow, a small unmanned ISR system; and WEB (Warfighter Electronic Bridge) GCS, designed to command and control an entire drone family of systems for military operations. Its other offerings include Edge 130 Blue drone systems, Trichon, a fixed-wing VTOL for extended endurance and range, and FANG FPV drones optimized for military operations with precision strike capabilities. The firm's Division includes Teal, FlightWave, and Blue Ops.
81GF Score
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