Standard Chemical & Pharmaceutical Co (TPE:1720) 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.
Standard Chemical & Pharmaceutical Co Cash Conversion Cycle Related Terms
Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co Cash Conversion Cycle Chart
TPE:1720 vs ZTS, UTHR: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Standard Chemical & Pharmaceutical Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Standard Chemical & Pharmaceutical Co's Cash Conversion Cycle falls into.
Standard Chemical & Pharmaceutical 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.
Standard Chemical & Pharmaceutical Co (TPE:1720) has a Cash Conversion Cycle of 161.23 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Standard Chemical & Pharmaceutical Co and its competitors.
Is Standard Chemical & Pharmaceutical Co's Cash Conversion Cycle too high?
Standard Chemical & Pharmaceutical Co's current Cash Conversion Cycle is 161.23. The Drug Manufacturers industry median Cash Conversion Cycle is 145.92. Standard Chemical & Pharmaceutical Co's value of 161.23 is 10.5% above this industry median. Overall, Standard Chemical & Pharmaceutical Co has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Standard Chemical & Pharmaceutical Co's Cash Conversion Cycle compare to ZTS and UTHR?
Standard Chemical & Pharmaceutical Co's Cash Conversion Cycle of 161.23 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.92. Standard Chemical & Pharmaceutical Co's value of 161.23 is 10.5% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.92, based on 955 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. Standard Chemical & Pharmaceutical Co's current Cash Conversion Cycle of 161.23 is 10.5% 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 Standard Chemical & Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Standard Chemical & Pharmaceutical Co's current Cash Conversion Cycle is 161.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Standard Chemical & Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Standard Chemical & Pharmaceutical Co (TPE:1720) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$70.94, compared to a current price of NT$63.90 — trading 9.9% below its estimated fair value. The current Cash Conversion Cycle is 161.23 and 10.5% above the Drug Manufacturers industry median of 145.92. Standard Chemical & Pharmaceutical Co's overall GF Score™ is 95/100 with 2 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 Standard Chemical & Pharmaceutical Co (TPE:1720), the current Cash Conversion Cycle is 161.23 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 Standard Chemical & Pharmaceutical Co (TPE:1720) Overvalued in 2026?
Based on GuruFocus' analysis, Standard Chemical & Pharmaceutical Co stock appears to be undervalued.
The current stock price of NT$63.90 is trading 9.9% below its estimated GF Value™ of NT$70.94.
GuruFocus considers Standard Chemical & Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for TPE:1720:
Cash Conversion Cycle: 161.23
GF Value™: NT$70.94 vs. price of NT$63.90 (9.9% below fair value)
Industry Position: 10.5% above the Drug Manufacturers median
No single metric tells the full story. See the TPE:1720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Standard Chemical & Pharmaceutical Co Business Description
Standard Chemical & Pharmaceutical Co Ltd is engaged in the manufacturing and sales of Chinese and western medicine, cosmetics, beverage, normal instruments and medical instruments. Its segments include Medicine, Dietary supplement and Ingredients. The majority of the revenue is derived from the Medicine segment. Geographically it operates in Taiwan, Japan and Others with Taiwan generating the maximum revenue.
95GF Score
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