Houlihan Lokey's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 31.33.
Houlihan Lokey's Days Inventory for the
three
months ended in Mar. 2026 was 0.
Houlihan Lokey's Days Payable for the
three
months ended in Mar. 2026 was 28.27.
Therefore, Houlihan Lokey's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 3.06.
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.
Houlihan Lokey Cash Conversion Cycle Related Terms
Houlihan Lokey Cash Conversion Cycle Historical Data
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The historical data trend for Houlihan Lokey'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.
STU:2HL vs JEF, SF, SNEX: Cash Conversion Cycle Comparison
For the Capital Markets subindustry, Houlihan Lokey'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.
Houlihan Lokey Cash Conversion Cycle vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey's Cash Conversion Cycle falls into.
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.
Houlihan Lokey's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 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.
Houlihan Lokey (STU:2HL) has a Cash Conversion Cycle of 3.06 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Houlihan Lokey and its competitors.
Is Houlihan Lokey's Cash Conversion Cycle too high?
Houlihan Lokey's current Cash Conversion Cycle is 3.06. The Capital Markets industry median Cash Conversion Cycle is 1.74. Houlihan Lokey's value of 3.06 is 75.9% above this industry median. Overall, Houlihan Lokey has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Houlihan Lokey's Cash Conversion Cycle compare to JEF and SF?
Houlihan Lokey's Cash Conversion Cycle of 3.06 can be compared against companies in the Capital Markets industry. The industry median Cash Conversion Cycle is 1.74. Houlihan Lokey's value of 3.06 is 75.9% 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 a Capital Markets company?
The median Cash Conversion Cycle among Capital Markets companies is 1.74, based on 637 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. Houlihan Lokey's current Cash Conversion Cycle of 3.06 is 75.9% 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 Houlihan Lokey and its competitors. For the Capital Markets industry, the median Cash Conversion Cycle is 1.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houlihan Lokey's current Cash Conversion Cycle is 3.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houlihan Lokey stock overvalued right now?
Based on GuruFocus' analysis, Houlihan Lokey (STU:2HL) is currently considered Modestly Undervalued. The stock's GF Value™ is €166.69, compared to a current price of €122.00 — trading 26.8% below its estimated fair value. The current Cash Conversion Cycle is 3.06 and 75.9% above the Capital Markets industry median of 1.74. Houlihan Lokey's overall GF Score™ is 91/100 with 3 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 Houlihan Lokey (STU:2HL), the current Cash Conversion Cycle is 3.06 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 Houlihan Lokey (STU:2HL) Overvalued in 2026?
Based on GuruFocus' analysis, Houlihan Lokey stock appears to be undervalued.
The current stock price of €122.00 is trading 26.8% below its estimated GF Value™ of €166.69.
GuruFocus considers Houlihan Lokey to be Modestly Undervalued.
Key valuation signals for STU:2HL:
Cash Conversion Cycle: 3.06
GF Value™: €166.69 vs. price of €122.00 (26.8% below fair value)
Industry Position: 75.9% above the Capital Markets median
No single metric tells the full story. See the STU:2HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
91GF Score
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