Honghua Group's Days Sales Outstanding for the
six
months ended in Dec. 2025 was 182.04.
Honghua Group's Days Inventory for the
six
months ended in Dec. 2025 was 102.9.
Honghua Group's Days Payable for the
six
months ended in Dec. 2025 was 224.28.
Therefore, Honghua Group's Cash Conversion Cycle (CCC) for the
six
months ended in Dec. 2025 was 60.66.
Honghua Group (STU:4HB) 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.
Honghua Group Cash Conversion Cycle Related Terms
Honghua Group Cash Conversion Cycle Historical Data
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The historical data trend for Honghua Group'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:4HB vs SLB, BKR, HAL: Cash Conversion Cycle Comparison
For the Oil & Gas Equipment & Services subindustry, Honghua Group'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.
Honghua Group Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Honghua Group's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Honghua Group'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.
Honghua Group'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.
Honghua Group (STU:4HB) has a Cash Conversion Cycle of 60.66 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Honghua Group and its competitors.
Is Honghua Group's Cash Conversion Cycle too high?
Honghua Group's current Cash Conversion Cycle is 60.66. The Oil & Gas industry median Cash Conversion Cycle is 18.25. Honghua Group's value of 60.66 is 232.4% above this industry median. Overall, Honghua Group has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honghua Group's Cash Conversion Cycle compare to SLB and BKR?
Honghua Group's Cash Conversion Cycle of 60.66 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.25. Honghua Group's value of 60.66 is 232.4% 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 an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.25, based on 917 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. Honghua Group's current Cash Conversion Cycle of 60.66 is 232.4% 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 Honghua Group and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honghua Group's current Cash Conversion Cycle is 60.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honghua Group stock overvalued right now?
Based on GuruFocus' analysis, Honghua Group (STU:4HB) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.01, compared to a current price of €0.02 — trading 50% above its estimated fair value. The current Cash Conversion Cycle is 60.66 and 232.4% above the Oil & Gas industry median of 18.25. Honghua Group's overall GF Score™ is 36/100 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 Honghua Group (STU:4HB), the current Cash Conversion Cycle is 60.66 as of Dec. 2025. 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 Honghua Group (STU:4HB) Overvalued in 2026?
Based on GuruFocus' analysis, Honghua Group stock appears to be overvalued.
The current stock price of €0.02 is trading 50% above its estimated GF Value™ of €0.01.
GuruFocus considers Honghua Group to be Significantly Overvalued.
Key valuation signals for STU:4HB:
Cash Conversion Cycle: 60.66
GF Value™: €0.01 vs. price of €0.02 (50% above fair value)
Industry Position: 232.4% above the Oil & Gas median
No single metric tells the full story. See the STU:4HB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honghua Group Ltd is an oil and gas exploration and development equipment manufacturing and drilling engineering services company. Its product portfolio includes land drilling rigs, electric fracturing equipment, core parts and components of drilling and completion equipment, offshore engineering equipment manufacturing, drilling engineering services, digital products for drilling and completion, as well as new energy equipment and comprehensive services for oil and gas fields, providing customers with a full products and services for energy development. Its segments include land drilling rigs, parts and components, and others; drilling engineering services; fracturing services; and offshore engineering. The land drilling rigs segment derives the majority of the revenue.
36GF Score
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