Semiconductor Manufacturing International (SHSE:688981) 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.
Semiconductor Manufacturing International Cash Conversion Cycle Related Terms
Semiconductor Manufacturing International 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.
Semiconductor Manufacturing International Cash Conversion Cycle Chart
Semiconductor Manufacturing International Annual Data
SHSE:688981 vs NVDA, AVGO, MU: Cash Conversion Cycle Comparison
For the Semiconductors subindustry, Semiconductor Manufacturing International'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.
Semiconductor Manufacturing International Cash Conversion Cycle vs Semiconductors Industry
Semiconductor Manufacturing International 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.
Semiconductor Manufacturing International (SHSE:688981) has a Cash Conversion Cycle of 128.04 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Semiconductor Manufacturing International and its competitors.
Is Semiconductor Manufacturing International's Cash Conversion Cycle too high?
Semiconductor Manufacturing International's current Cash Conversion Cycle is 128.04. The Semiconductors industry median Cash Conversion Cycle is 116.11. Semiconductor Manufacturing International's value of 128.04 is 10.3% above this industry median. Overall, Semiconductor Manufacturing International has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semiconductor Manufacturing International's Cash Conversion Cycle compare to NVDA and AVGO?
Semiconductor Manufacturing International's Cash Conversion Cycle of 128.04 can be compared against companies in the Semiconductors industry. The industry median Cash Conversion Cycle is 116.11. Semiconductor Manufacturing International's value of 128.04 is 10.3% 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 Semiconductors company?
The median Cash Conversion Cycle among Semiconductors companies is 116.11, based on 1,021 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. Semiconductor Manufacturing International's current Cash Conversion Cycle of 128.04 is 10.3% 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 Semiconductor Manufacturing International and its competitors. For the Semiconductors industry, the median Cash Conversion Cycle is 116.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semiconductor Manufacturing International's current Cash Conversion Cycle is 128.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semiconductor Manufacturing International stock overvalued right now?
Based on GuruFocus' analysis, Semiconductor Manufacturing International (SHSE:688981) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥69.60, compared to a current price of ¥148.76 — trading 113.7% above its estimated fair value. The current Cash Conversion Cycle is 128.04 and 10.3% above the Semiconductors industry median of 116.11. Semiconductor Manufacturing International's overall GF Score™ is 77/100 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 Semiconductor Manufacturing International (SHSE:688981), the current Cash Conversion Cycle is 128.04 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 Semiconductor Manufacturing International (SHSE:688981) Overvalued in 2026?
Based on GuruFocus' analysis, Semiconductor Manufacturing International stock appears to be overvalued.
The current stock price of ¥148.76 is trading 113.7% above its estimated GF Value™ of ¥69.60.
GuruFocus considers Semiconductor Manufacturing International to be Significantly Overvalued.
Key valuation signals for SHSE:688981:
Cash Conversion Cycle: 128.04
GF Value™: ¥69.60 vs. price of ¥148.76 (113.7% above fair value)
Industry Position: 10.3% above the Semiconductors median
No single metric tells the full story. See the SHSE:688981 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semiconductor Manufacturing International Business Description
Founded in 2000, Semiconductor Manufacturing International Corporation is the largest foundry in China and the third-largest globally after TSMC and Samsung Electronics, overtaking GlobalFoundries and United Microelectronics in 2024. The company's headquarters and foundry are in Shanghai, with additional foundries in Beijing, Tianjin, and Shenzhen, and offices in the United States, Europe, Japan, Taiwan, and Hong Kong. Its products are used in artificial intelligence, data centers, automotive, consumer electronics, memory, and "Internet of Things" products. SMIC employs 19,952 people as of Dec. 31, 2025.
77GF Score
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