Formosa International Hotels (TPE:2707) 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.
Formosa International Hotels Cash Conversion Cycle Related Terms
Formosa International Hotels 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.
Formosa International Hotels Cash Conversion Cycle Chart
TPE:2707 vs MAR, HLT, H: Cash Conversion Cycle Comparison
For the Lodging subindustry, Formosa International Hotels'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.
Formosa International Hotels Cash Conversion Cycle vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Formosa International Hotels's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Formosa International Hotels's Cash Conversion Cycle falls into.
Formosa International Hotels 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.
Formosa International Hotels'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.
Formosa International Hotels (TPE:2707) has a Cash Conversion Cycle of -6.85 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Formosa International Hotels and its competitors.
Is Formosa International Hotels' Cash Conversion Cycle too high?
Formosa International Hotels' current Cash Conversion Cycle is -6.85. Overall, Formosa International Hotels has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Formosa International Hotels' Cash Conversion Cycle compare to MAR and HLT?
Formosa International Hotels' Cash Conversion Cycle of -6.85 can be compared against companies in the Travel & Leisure industry. The industry median Cash Conversion Cycle is 10.28. 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 Travel & Leisure company?
The median Cash Conversion Cycle among Travel & Leisure companies is 10.28, based on 836 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. 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 Formosa International Hotels and its competitors. For the Travel & Leisure industry, the median Cash Conversion Cycle is 10.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa International Hotels's current Cash Conversion Cycle is -6.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa International Hotels stock overvalued right now?
Based on GuruFocus' analysis, Formosa International Hotels (TPE:2707) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$217.53, compared to a current price of NT$179.50 — trading 17.5% below its estimated fair value. The current Cash Conversion Cycle is -6.85. Formosa International Hotels' overall GF Score™ is 91/100 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 Formosa International Hotels (TPE:2707), the current Cash Conversion Cycle is -6.85 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 Formosa International Hotels (TPE:2707) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa International Hotels stock appears to be undervalued.
The current stock price of NT$179.50 is trading 17.5% below its estimated GF Value™ of NT$217.53.
GuruFocus considers Formosa International Hotels to be Modestly Undervalued.
Key valuation signals for TPE:2707:
Cash Conversion Cycle: -6.85
GF Value™: NT$217.53 vs. price of NT$179.50 (17.5% below fair value)
No single metric tells the full story. See the TPE:2707 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa International Hotels Corp is engaged in the operation of international tourist hotels. The Group also operates Chinese and Western restaurants, cafes, bars, conference halls, and related facilities, and provides consulting services for hotel management as well as consultation and diagnostic analysis for various types of leisure industry facilities. Its operations are organized into four business segments: Room/Accommodation, Food and Beverage, Rental, and Operation Management. The Group's revenue is mainly derived from its hotel and restaurant operations.
91GF Score
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