Longchen Paper & Packaging Co (TPE:1909) 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.
Longchen Paper & Packaging Co Cash Conversion Cycle Related Terms
Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co Cash Conversion Cycle Chart
Longchen Paper & Packaging Co Cash Conversion Cycle Competitor Comparison
For the Paper & Paper Products subindustry, Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co Cash Conversion Cycle vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Longchen Paper & Packaging Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Longchen Paper & Packaging Co's Cash Conversion Cycle falls into.
Longchen Paper & Packaging 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.
Longchen Paper & Packaging Co (TPE:1909) has a Cash Conversion Cycle of 40.08 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Longchen Paper & Packaging Co and its competitors.
Is Longchen Paper & Packaging Co's Cash Conversion Cycle too high?
Longchen Paper & Packaging Co's current Cash Conversion Cycle is 40.08. The Forest Products industry median Cash Conversion Cycle is 91.34. Longchen Paper & Packaging Co's value of 40.08 is 56.1% below this industry median. Overall, Longchen Paper & Packaging Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Longchen Paper & Packaging Co's Cash Conversion Cycle compare to competitors?
Longchen Paper & Packaging Co's Cash Conversion Cycle of 40.08 can be compared against companies in the Forest Products industry. The industry median Cash Conversion Cycle is 91.34. Longchen Paper & Packaging Co's value of 40.08 is 56.1% below 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 Forest Products company?
The median Cash Conversion Cycle among Forest Products companies is 91.34, based on 283 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. Longchen Paper & Packaging Co's current Cash Conversion Cycle of 40.08 is 56.1% below 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 Longchen Paper & Packaging Co and its competitors. For the Forest Products industry, the median Cash Conversion Cycle is 91.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longchen Paper & Packaging Co's current Cash Conversion Cycle is 40.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longchen Paper & Packaging Co stock overvalued right now?
Based on GuruFocus' analysis, Longchen Paper & Packaging Co (TPE:1909) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$12.31, compared to a current price of NT$10.30 — trading 16.3% below its estimated fair value. The current Cash Conversion Cycle is 40.08 and 56.1% below the Forest Products industry median of 91.34. Longchen Paper & Packaging Co's overall GF Score™ is 64/100 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 Longchen Paper & Packaging Co (TPE:1909), the current Cash Conversion Cycle is 40.08 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 Longchen Paper & Packaging Co (TPE:1909) Overvalued in 2026?
Based on GuruFocus' analysis, Longchen Paper & Packaging Co stock appears to be undervalued.
The current stock price of NT$10.30 is trading 16.3% below its estimated GF Value™ of NT$12.31.
GuruFocus considers Longchen Paper & Packaging Co to be Modestly Undervalued.
Key valuation signals for TPE:1909:
Cash Conversion Cycle: 40.08
GF Value™: NT$12.31 vs. price of NT$10.30 (16.3% below fair value)
Industry Position: 56.1% below the Forest Products median
No single metric tells the full story. See the TPE:1909 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longchen Paper & Packaging Co Business Description
Longchen Paper & Packaging Co Ltd is engaged in manufacturing, processing, and trading paper raw materials; manufacturing, printing, processing and trading of corrugated containers; and recycling/renewal of energy and resources, including turnkey design, trial-run and operation of cogeneration and incinerator systems. Its segments include Containerboard: manufacturing and sales of Containerboard; Corrugated container: manufacturing and sale of paper machines; Wastepaper: procurement and sale of wastepaper; and Others: public wastewater treatment and general administration in the Group. It derives majority of the revenue from Containerboard segment.
64GF Score
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