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Hangzhou First Applied Material Co (SHSE:603806) 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.
Hangzhou First Applied Material Co Cash Conversion Cycle Related Terms
Hangzhou First Applied Material 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.
Hangzhou First Applied Material Co Cash Conversion Cycle Chart
SHSE:603806 vs AMAT, LRCX, KLAC: Cash Conversion Cycle Comparison
For the Semiconductor Equipment & Materials subindustry, Hangzhou First Applied Material 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.
Hangzhou First Applied Material Co Cash Conversion Cycle vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Hangzhou First Applied Material Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Hangzhou First Applied Material Co's Cash Conversion Cycle falls into.
Hangzhou First Applied Material 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.
Hangzhou First Applied Material Co (SHSE:603806) has a Cash Conversion Cycle of 140.63 as of Jun. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Hangzhou First Applied Material Co and its competitors.
Is Hangzhou First Applied Material Co's Cash Conversion Cycle too high?
Hangzhou First Applied Material Co's current Cash Conversion Cycle is 140.63. The Semiconductors industry median Cash Conversion Cycle is 114.90. Hangzhou First Applied Material Co's value of 140.63 is 22.4% above this industry median. Overall, Hangzhou First Applied Material Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou First Applied Material Co's Cash Conversion Cycle compare to AMAT and LRCX?
Hangzhou First Applied Material Co's Cash Conversion Cycle of 140.63 can be compared against companies in the Semiconductors industry. The industry median Cash Conversion Cycle is 114.90. Hangzhou First Applied Material Co's value of 140.63 is 22.4% 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 Semiconductors company?
The median Cash Conversion Cycle among Semiconductors companies is 114.90, based on 1,027 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. Hangzhou First Applied Material Co's current Cash Conversion Cycle of 140.63 is 22.4% 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 Hangzhou First Applied Material Co and its competitors. For the Semiconductors industry, the median Cash Conversion Cycle is 114.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou First Applied Material Co's current Cash Conversion Cycle is 140.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou First Applied Material Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou First Applied Material Co (SHSE:603806) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥12.30, compared to a current price of ¥15.11 — trading 22.8% above its estimated fair value. The current Cash Conversion Cycle is 140.63 and 22.4% above the Semiconductors industry median of 114.90. Hangzhou First Applied Material Co's overall GF Score™ is 87/100 with 5 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 Hangzhou First Applied Material Co (SHSE:603806), the current Cash Conversion Cycle is 140.63 as of Jun. 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 Hangzhou First Applied Material Co (SHSE:603806) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou First Applied Material Co stock appears to be overvalued.
The current stock price of ¥15.11 is trading 22.8% above its estimated GF Value™ of ¥12.30.
GuruFocus considers Hangzhou First Applied Material Co to be Modestly Overvalued.
Key valuation signals for SHSE:603806:
Cash Conversion Cycle: 140.63
GF Value™: ¥12.30 vs. price of ¥15.11 (22.8% above fair value)
Industry Position: 22.4% above the Semiconductors median
No single metric tells the full story. See the SHSE:603806 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou First Applied Material Co Ltd is a China-based company engaged in the production of solar cell adhesive film, solar cell backplane, photosensitive dry film, flexible copper clad laminate, silicone material, hot melt adhesive film (hot melt adhesive), hot melt web film (double-sided adhesive), clothing accessories (lining cloth); sales of solar cell modules, cells, polysilicon, polymer materials, and chemical raw materials and products.
87GF Score
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