China Meheco Group Co's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 166.28.
China Meheco Group Co's Days Inventory for the
three
months ended in Mar. 2026 was 76.47.
China Meheco Group Co's Days Payable for the
three
months ended in Mar. 2026 was 130.85.
Therefore, China Meheco Group Co's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 111.90.
China Meheco Group Co (SHSE:600056) 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.
China Meheco Group Co Cash Conversion Cycle Related Terms
China Meheco Group Co Cash Conversion Cycle Historical Data
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The historical data trend for China Meheco Group 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.
SHSE:600056 vs MCK, CAH, COR: Cash Conversion Cycle Comparison
For the Medical Distribution subindustry, China Meheco Group 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.
China Meheco Group Co Cash Conversion Cycle vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, China Meheco Group Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where China Meheco Group Co's Cash Conversion Cycle falls into.
China Meheco Group 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.
China Meheco Group 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.
China Meheco Group Co (SHSE:600056) has a Cash Conversion Cycle of 111.90 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on China Meheco Group Co and its competitors.
Is China Meheco Group Co's Cash Conversion Cycle too high?
China Meheco Group Co's current Cash Conversion Cycle is 111.90. The Medical Distribution industry median Cash Conversion Cycle is 55.95. China Meheco Group Co's value of 111.90 is 100% above this industry median. Overall, China Meheco Group Co has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Meheco Group Co's Cash Conversion Cycle compare to MCK and CAH?
China Meheco Group Co's Cash Conversion Cycle of 111.90 can be compared against companies in the Medical Distribution industry. The industry median Cash Conversion Cycle is 55.95. China Meheco Group Co's value of 111.90 is 100% 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 Medical Distribution company?
The median Cash Conversion Cycle among Medical Distribution companies is 55.95, based on 117 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. China Meheco Group Co's current Cash Conversion Cycle of 111.90 is 100% 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 China Meheco Group Co and its competitors. For the Medical Distribution industry, the median Cash Conversion Cycle is 55.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Meheco Group Co's current Cash Conversion Cycle is 111.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Meheco Group Co stock overvalued right now?
Based on GuruFocus' analysis, China Meheco Group Co (SHSE:600056) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.48, compared to a current price of ¥9.29 — trading 11.4% below its estimated fair value. The current Cash Conversion Cycle is 111.90 and 100% above the Medical Distribution industry median of 55.95. China Meheco Group Co's overall GF Score™ is 65/100 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 China Meheco Group Co (SHSE:600056), the current Cash Conversion Cycle is 111.90 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 China Meheco Group Co (SHSE:600056) Overvalued in 2026?
Based on GuruFocus' analysis, China Meheco Group Co stock appears to be undervalued.
The current stock price of ¥9.29 is trading 11.4% below its estimated GF Value™ of ¥10.48.
GuruFocus considers China Meheco Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600056:
Cash Conversion Cycle: 111.90
GF Value™: ¥10.48 vs. price of ¥9.29 (11.4% below fair value)
Industry Position: 100% above the Medical Distribution median
No single metric tells the full story. See the SHSE:600056 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Meheco Group Co Ltd is engaged in the distribution and trading of botanical medicines, medical instruments, and pharmaceuticals. It offers botanic medicines and herbal products, as well as exports of natural medicines, including herbs, spices, plant extracts, bee products, and Chinese traditional medicines. The company's business scope covers the whole industry chain, from research and development, cultivation and processing, manufacturing, distribution, and logistics to international trading, academic promotion, and technical service. The corporation provides trading services for customers in the pharmaceutical and chemical field, covering APIs, preparations, biologicals, blood products, and others.
65GF Score
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