Shandong Molong Petroleum Machinery Co (OTCPK:SHANF) 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.
Shandong Molong Petroleum Machinery Co Cash Conversion Cycle Related Terms
Shandong Molong Petroleum Machinery 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.
Shandong Molong Petroleum Machinery Co Cash Conversion Cycle Chart
Shandong Molong Petroleum Machinery Co Annual Data
SHANF vs SLB, BKR, HAL: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Shandong Molong Petroleum Machinery 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.
Shandong Molong Petroleum Machinery Co Cash Conversion Cycle vs Oil & Gas Industry
Shandong Molong Petroleum Machinery 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.
* 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.
Shandong Molong Petroleum Machinery Co (SHANF) has a Cash Conversion Cycle of 57.67 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Shandong Molong Petroleum Machinery Co and its competitors.
Is Shandong Molong Petroleum Machinery Co's Cash Conversion Cycle too high?
Shandong Molong Petroleum Machinery Co's current Cash Conversion Cycle is 57.67. The Oil & Gas industry median Cash Conversion Cycle is 18.26. Shandong Molong Petroleum Machinery Co's value of 57.67 is 215.9% above this industry median. Overall, Shandong Molong Petroleum Machinery Co has a GF Score™ of 25/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Molong Petroleum Machinery Co's Cash Conversion Cycle compare to SLB and BKR?
Shandong Molong Petroleum Machinery Co's Cash Conversion Cycle of 57.67 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.26. Shandong Molong Petroleum Machinery Co's value of 57.67 is 215.9% 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 Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.26, based on 918 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. Shandong Molong Petroleum Machinery Co's current Cash Conversion Cycle of 57.67 is 215.9% 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 Shandong Molong Petroleum Machinery Co and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Molong Petroleum Machinery Co's current Cash Conversion Cycle is 57.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Molong Petroleum Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Molong Petroleum Machinery Co (SHANF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.56, compared to a current price of $0.94 — trading 67.4% above its estimated fair value. The current Cash Conversion Cycle is 57.67 and 215.9% above the Oil & Gas industry median of 18.26. Shandong Molong Petroleum Machinery Co's overall GF Score™ is 25/100 with 6 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 Shandong Molong Petroleum Machinery Co (SHANF), the current Cash Conversion Cycle is 57.67 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 Shandong Molong Petroleum Machinery Co (SHANF) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Molong Petroleum Machinery Co stock appears to be overvalued.
The current stock price of $0.94 is trading 67.4% above its estimated GF Value™ of $0.56.
GuruFocus considers Shandong Molong Petroleum Machinery Co to be Significantly Overvalued.
Key valuation signals for SHANF:
Cash Conversion Cycle: 57.67
GF Value™: $0.56 vs. price of $0.94 (67.4% above fair value)
Industry Position: 215.9% above the Oil & Gas median
No single metric tells the full story. See the SHANF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Molong Petroleum Machinery Co Business Description
Shandong Molong Petroleum Machinery Co Ltd is engaged in the design, research and development, processing and manufacturing, sale service, and export trade of products for the energy equipment industry. Its main products include petroleum-drilling machinery equipment, petroleum and natural gas pipeline equipment, and oil and gas exploitation equipment. These products are used in petroleum, natural gas, shale gas, coalbed methane, hydrogen energy, oil refining, coal mining machinery, boiler manufacturing, engineering machinery manufacturing, and oilfield services.
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