Edarat Communication And Information Technology Co (SAU:9557) Cash Conversion Cycle: -5.04 (As of Dec. 2025)

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SAU:9557 Edarat Communication And Information Technology Co SAU:9557
51 GF Score
Price ﷼274.20
GF Value ﷼251.00
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Edarat Communication And Information Technology Co Cash Conversion Cycle?

Edarat Communication And Information Technology Co SAU:9557 +0.59% 51 Cash Conversion Cycle is -5.04 as of Dec. 2025. GuruFocus rates SAU:9557 with a GF Score™ of 51/100 and a GF Value™ of ﷼251.00 (Fairly Valued). The stock has 4 warning signs investors should review.

Cash Conversion Cycle is one of several measures of management effectiveness. It equals Days Sales Outstanding + Days Inventory - Days Payable.

Edarat Communication And Information Technology Co's Days Sales Outstanding for the six months ended in Dec. 2025 was 31.55.
Edarat Communication And Information Technology Co's Days Inventory for the six months ended in Dec. 2025 was 0.
Edarat Communication And Information Technology Co's Days Payable for the six months ended in Dec. 2025 was 36.59.
Therefore, Edarat Communication And Information Technology Co's Cash Conversion Cycle (CCC) for the six months ended in Dec. 2025 was -5.04.


Edarat Communication And Information Technology Co  (SAU:9557) 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.


Edarat Communication And Information Technology Co Cash Conversion Cycle Related Terms


Edarat Communication And Information Technology Co Cash Conversion Cycle Historical Data

* Premium members only.

The historical data trend for Edarat Communication And Information Technology Co'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.

Edarat Communication And Information Technology Co Cash Conversion Cycle Chart

Edarat Communication And Information Technology Co Annual Data
Trend Dec21 Dec22 Dec23 Dec24 Dec25
Cash Conversion Cycle
31.40 -1.55 17.15 21.63 -21.90

Edarat Communication And Information Technology Co Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Cash Conversion Cycle Get a 7-Day Free Trial Premium Member Only 23.78 33.60 11.61 21.66 -5.04

SAU:9557 vs IBM, ACN, FISV: Cash Conversion Cycle Comparison

For the Information Technology Services subindustry, Edarat Communication And Information Technology 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.


Edarat Communication And Information Technology Co Cash Conversion Cycle vs Software Industry

For the Software industry and Technology sector, Edarat Communication And Information Technology Co's Cash Conversion Cycle distribution charts can be found below:

* The bar in red indicates where Edarat Communication And Information Technology Co's Cash Conversion Cycle falls into.


SAU:9557
51GF Score
Edarat Communication And Information Technology Co SAU:9557
Cash Conversion Cycle is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Edarat Communication And Information Technology 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.

Edarat Communication And Information Technology Co's Cash Conversion Cycle for the fiscal year that ended in Dec. 2025 is calculated as

Cash Conversion Cycle=Days Sales Outstanding +Days Inventory-Days Payable
=19.8+0-41.7
=-21.90

Edarat Communication And Information Technology Co's Cash Conversion Cycle for the quarter that ended in Dec. 2025 is calculated as:

Cash Conversion Cycle=Days Sales Outstanding+Days Inventory-Days Payable
=31.55+0-36.59
=-5.04

* 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.

Frequently Asked Questions Learn more about Cash Conversion Cycle →
What does a Cash Conversion Cycle of -5.04 mean?
Edarat Communication And Information Technology Co (SAU:9557) has a Cash Conversion Cycle of -5.04 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Edarat Communication And Information Technology Co and its competitors.
Is Edarat Communication And Information Technology Co's Cash Conversion Cycle too high?
Edarat Communication And Information Technology Co's current Cash Conversion Cycle is -5.04. Overall, Edarat Communication And Information Technology Co has a GF Score™ of 51/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Edarat Communication And Information Technology Co's Cash Conversion Cycle compare to IBM and ACN?
Edarat Communication And Information Technology Co's Cash Conversion Cycle of -5.04 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.01. 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.01, based on 2,813 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. 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 Edarat Communication And Information Technology Co and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Edarat Communication And Information Technology Co's current Cash Conversion Cycle is -5.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Edarat Communication And Information Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Edarat Communication And Information Technology Co (SAU:9557) is currently considered Fairly Valued. The stock's GF Value™ is ﷼251.00, compared to a current price of ﷼274.20 — trading 9.2% above its estimated fair value. The current Cash Conversion Cycle is -5.04. Edarat Communication And Information Technology 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 Edarat Communication And Information Technology Co (SAU:9557), the current Cash Conversion Cycle is -5.04 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 Edarat Communication And Information Technology Co (SAU:9557) Overvalued in 2026?

Based on GuruFocus' analysis, Edarat Communication And Information Technology Co stock appears to be overvalued. The current stock price of ﷼274.20 is trading 9.2% above its estimated GF Value™ of ﷼251.00. GuruFocus considers Edarat Communication And Information Technology Co to be Fairly Valued.

Key valuation signals for SAU:9557:

  • Cash Conversion Cycle: -5.04
  • GF Value™: ﷼251.00 vs. price of ﷼274.20 (9.2% above fair value)
  • GF Score™: 51/100 with 4 warning signs

No single metric tells the full story. See the SAU:9557 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Edarat Communication And Information Technology Co Business Description

Address King Abdulaziz Road, PO Box. No. 2414, Al Yasmeen District, Riyadh, SAU, 13322
Edarat Communication And Information Technology Co is engaged in the implementation of service contracts including provision of virtual network operator services, colocation services, system analysis, design and programming of software, providing management and monitoring of communications and information networks, establishing web hosting infrastructure and related services, data center services and related activities and subscriptions to provide cloud computing service. Its services include data center engineering, data center colocation, Edge AI, Edarat Marketplace, and cloud services. The company has two operating segments; Data Center Engineering Services and Cloud Service. It derives maximum revenue from Data Center Engineering Services segment.
51GF Score

Get the complete analysis for SAU:9557

Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

﷼274.20
Price
﷼251.00
GF Value