Chunghwa Chemical Synthesis & Biotech Co (TPE:1762) 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.
Chunghwa Chemical Synthesis & Biotech Co Cash Conversion Cycle Related Terms
Chunghwa Chemical Synthesis & Biotech 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.
Chunghwa Chemical Synthesis & Biotech Co Cash Conversion Cycle Chart
Chunghwa Chemical Synthesis & Biotech Co Annual Data
TPE:1762 vs VRTX, REGN, ALNY: Cash Conversion Cycle Comparison
For the Biotechnology subindustry, Chunghwa Chemical Synthesis & Biotech 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.
Chunghwa Chemical Synthesis & Biotech Co Cash Conversion Cycle vs Biotechnology Industry
Chunghwa Chemical Synthesis & Biotech 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.
Chunghwa Chemical Synthesis & Biotech Co (TPE:1762) has a Cash Conversion Cycle of 408.25 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Chunghwa Chemical Synthesis & Biotech Co and its competitors.
Is Chunghwa Chemical Synthesis & Biotech Co's Cash Conversion Cycle too high?
Chunghwa Chemical Synthesis & Biotech Co's current Cash Conversion Cycle is 408.25. The Biotechnology industry median Cash Conversion Cycle is 103.69. Chunghwa Chemical Synthesis & Biotech Co's value of 408.25 is 293.7% above this industry median. Overall, Chunghwa Chemical Synthesis & Biotech Co has a GF Score™ of 58/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chunghwa Chemical Synthesis & Biotech Co's Cash Conversion Cycle compare to VRTX and REGN?
Chunghwa Chemical Synthesis & Biotech Co's Cash Conversion Cycle of 408.25 can be compared against companies in the Biotechnology industry. The industry median Cash Conversion Cycle is 103.69. Chunghwa Chemical Synthesis & Biotech Co's value of 408.25 is 293.7% 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 a Biotechnology company?
The median Cash Conversion Cycle among Biotechnology companies is 103.69, based on 867 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. Chunghwa Chemical Synthesis & Biotech Co's current Cash Conversion Cycle of 408.25 is 293.7% 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 Chunghwa Chemical Synthesis & Biotech Co and its competitors. For the Biotechnology industry, the median Cash Conversion Cycle is 103.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chunghwa Chemical Synthesis & Biotech Co's current Cash Conversion Cycle is 408.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chunghwa Chemical Synthesis & Biotech Co stock overvalued right now?
Based on GuruFocus' analysis, Chunghwa Chemical Synthesis & Biotech Co (TPE:1762) is currently considered Fairly Valued. The stock's GF Value™ is NT$37.92, compared to a current price of NT$38.15 — trading 0.6% above its estimated fair value. The current Cash Conversion Cycle is 408.25 and 293.7% above the Biotechnology industry median of 103.69. Chunghwa Chemical Synthesis & Biotech Co's overall GF Score™ is 58/100 with 8 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 Chunghwa Chemical Synthesis & Biotech Co (TPE:1762), the current Cash Conversion Cycle is 408.25 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 Chunghwa Chemical Synthesis & Biotech Co (TPE:1762) Overvalued in 2026?
Based on GuruFocus' analysis, Chunghwa Chemical Synthesis & Biotech Co stock appears to be overvalued.
The current stock price of NT$38.15 is trading 0.6% above its estimated GF Value™ of NT$37.92.
GuruFocus considers Chunghwa Chemical Synthesis & Biotech Co to be Fairly Valued.
Key valuation signals for TPE:1762:
Cash Conversion Cycle: 408.25
GF Value™: NT$37.92 vs. price of NT$38.15 (0.6% above fair value)
Industry Position: 293.7% above the Biotechnology median
No single metric tells the full story. See the TPE:1762 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chunghwa Chemical Synthesis & Biotech Co Business Description
Chunghwa Chemical Synthesis & Biotech Co Ltd is engaged in the research, development, manufacturing, and sales of pharmaceutical products. Geographically, it derives a majority of its revenue from the United States and also has a presence in Taiwan. Its product portfolio comprises pain management, antifungal, immunosuppressant, oncology, Cardiovascular, Peptide Drugs, and Others.
58GF Score
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