Shihlin Electric & Engineering (TPE:1503) 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.
Shihlin Electric & Engineering Cash Conversion Cycle Related Terms
Shihlin Electric & Engineering 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.
Shihlin Electric & Engineering Cash Conversion Cycle Chart
TPE:1503 vs VRT, BE: Cash Conversion Cycle Comparison
For the Electrical Equipment & Parts subindustry, Shihlin Electric & Engineering'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.
Shihlin Electric & Engineering Cash Conversion Cycle vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shihlin Electric & Engineering's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Shihlin Electric & Engineering's Cash Conversion Cycle falls into.
Shihlin Electric & Engineering 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.
Shihlin Electric & Engineering (TPE:1503) has a Cash Conversion Cycle of 134.04 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Shihlin Electric & Engineering and its competitors.
Is Shihlin Electric & Engineering's Cash Conversion Cycle too high?
Shihlin Electric & Engineering's current Cash Conversion Cycle is 134.04. The Industrial Products industry median Cash Conversion Cycle is 122.24. Shihlin Electric & Engineering's value of 134.04 is 9.7% above this industry median. Overall, Shihlin Electric & Engineering has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shihlin Electric & Engineering's Cash Conversion Cycle compare to VRT and BE?
Shihlin Electric & Engineering's Cash Conversion Cycle of 134.04 can be compared against companies in the Industrial Products industry. The industry median Cash Conversion Cycle is 122.24. Shihlin Electric & Engineering's value of 134.04 is 9.7% 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 Industrial Products company?
The median Cash Conversion Cycle among Industrial Products companies is 122.24, based on 3,031 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. Shihlin Electric & Engineering's current Cash Conversion Cycle of 134.04 is 9.7% 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 Shihlin Electric & Engineering and its competitors. For the Industrial Products industry, the median Cash Conversion Cycle is 122.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shihlin Electric & Engineering's current Cash Conversion Cycle is 134.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shihlin Electric & Engineering stock overvalued right now?
Based on GuruFocus' analysis, Shihlin Electric & Engineering (TPE:1503) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$199.50, compared to a current price of NT$238.00 — trading 19.3% above its estimated fair value. The current Cash Conversion Cycle is 134.04 and 9.7% above the Industrial Products industry median of 122.24. Shihlin Electric & Engineering's overall GF Score™ is 83/100 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 Shihlin Electric & Engineering (TPE:1503), the current Cash Conversion Cycle is 134.04 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 Shihlin Electric & Engineering (TPE:1503) Overvalued in 2026?
Based on GuruFocus' analysis, Shihlin Electric & Engineering stock appears to be overvalued.
The current stock price of NT$238.00 is trading 19.3% above its estimated GF Value™ of NT$199.50.
GuruFocus considers Shihlin Electric & Engineering to be Modestly Overvalued.
Key valuation signals for TPE:1503:
Cash Conversion Cycle: 134.04
GF Value™: NT$199.50 vs. price of NT$238.00 (19.3% above fair value)
Industry Position: 9.7% above the Industrial Products median
No single metric tells the full story. See the TPE:1503 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shihlin Electric & Engineering Business Description
Shihlin Electric & Engineering Corp is engaged in the manufacture of heavy electrical equipment, electrical machinery, electrical automotive equipment and related parts, and the sale and lease of commercial buildings. Its product portfolio comprises low-voltage switches, solar inverters, charging stations, power transformers, capacitors, switchboards, etc. The group has four reportable segments: Electric Distribution, Automobile Parts, Automation Equipment and Parts, and Other. The majority of its revenue is generated by the Electric Distribution segment, which manufactures and sells heavy electric equipment. Geographically, it generates maximum revenue from Taiwan, followed by Mainland China, Vietnam, and other regions.
83GF Score
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