ION Electronic Materials Co (ROCO:6959) 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.
ION Electronic Materials Co Cash Conversion Cycle Related Terms
ION Electronic Materials 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.
ION Electronic Materials Co Cash Conversion Cycle Chart
ROCO:6959 vs LIN, SHW, ECL: Cash Conversion Cycle Comparison
For the Specialty Chemicals subindustry, ION Electronic Materials 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.
ION Electronic Materials Co Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, ION Electronic Materials Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where ION Electronic Materials Co's Cash Conversion Cycle falls into.
ION Electronic Materials 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.
ION Electronic Materials Co'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.
ION Electronic Materials Co (ROCO:6959) has a Cash Conversion Cycle of 167.49 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on ION Electronic Materials Co and its competitors.
Is ION Electronic Materials Co's Cash Conversion Cycle too high?
ION Electronic Materials Co's current Cash Conversion Cycle is 167.49. The Chemicals industry median Cash Conversion Cycle is 89.43. ION Electronic Materials Co's value of 167.49 is 87.3% above this industry median. Overall, ION Electronic Materials Co has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ION Electronic Materials Co's Cash Conversion Cycle compare to LIN and SHW?
ION Electronic Materials Co's Cash Conversion Cycle of 167.49 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.43. ION Electronic Materials Co's value of 167.49 is 87.3% 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 Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.43, based on 1,578 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. ION Electronic Materials Co's current Cash Conversion Cycle of 167.49 is 87.3% 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 ION Electronic Materials Co and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ION Electronic Materials Co's current Cash Conversion Cycle is 167.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ION Electronic Materials Co stock overvalued right now?
Based on GuruFocus' analysis, ION Electronic Materials Co (ROCO:6959) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$89.15, compared to a current price of NT$132.00 — trading 48.1% above its estimated fair value. The current Cash Conversion Cycle is 167.49 and 87.3% above the Chemicals industry median of 89.43. ION Electronic Materials Co's overall GF Score™ is 51/100 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 ION Electronic Materials Co (ROCO:6959), the current Cash Conversion Cycle is 167.49 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 ION Electronic Materials Co (ROCO:6959) Overvalued in 2026?
Based on GuruFocus' analysis, ION Electronic Materials Co stock appears to be overvalued.
The current stock price of NT$132.00 is trading 48.1% above its estimated GF Value™ of NT$89.15.
GuruFocus considers ION Electronic Materials Co to be Significantly Overvalued.
Key valuation signals for ROCO:6959:
Cash Conversion Cycle: 167.49
GF Value™: NT$89.15 vs. price of NT$132.00 (48.1% above fair value)
Industry Position: 87.3% above the Chemicals median
No single metric tells the full story. See the ROCO:6959 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ION Electronic Materials Co Ltd focuses on special materials for the electronics industry and provides local services, With development capabilities and multi-national patents, it looks forward to contributing to Taiwan's technology industry. Its main products are advanced semiconductor materials. It has negative pressure steel cylinder production technology and localized production advantages. It has passed ISO 9001 certification and is a supplier partner of major semiconductor factories.
51GF Score
Get the complete analysis for ROCO:6959
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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