Longda Construction & Development (TPE:5519) 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.
Longda Construction & Development Cash Conversion Cycle Related Terms
Longda Construction & Development 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.
Longda Construction & Development Cash Conversion Cycle Chart
TPE:5519 vs PWR, FIX, EME: Cash Conversion Cycle Comparison
For the Engineering & Construction subindustry, Longda Construction & Development'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.
Longda Construction & Development Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Longda Construction & Development's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Longda Construction & Development's Cash Conversion Cycle falls into.
Longda Construction & Development 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.
What does a Cash Conversion Cycle of 1,283.40 mean?
Longda Construction & Development (TPE:5519) has a Cash Conversion Cycle of 1,283.40 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Longda Construction & Development and its competitors.
Is Longda Construction & Development's Cash Conversion Cycle too high?
Longda Construction & Development's current Cash Conversion Cycle is 1,283.40. The Construction industry median Cash Conversion Cycle is 55.89. Longda Construction & Development's value of 1,283.40 is 2196.3% above this industry median. Overall, Longda Construction & Development has a GF Score™ of 94/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Longda Construction & Development's Cash Conversion Cycle compare to PWR and FIX?
Longda Construction & Development's Cash Conversion Cycle of 1,283.40 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.89. Longda Construction & Development's value of 1,283.40 is 2196.3% 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.89, based on 1,764 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. Longda Construction & Development's current Cash Conversion Cycle of 1,283.40 is 2196.3% 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 Longda Construction & Development and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longda Construction & Development's current Cash Conversion Cycle is 1,283.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longda Construction & Development stock overvalued right now?
Based on GuruFocus' analysis, Longda Construction & Development (TPE:5519) is currently considered Fairly Valued. The stock's GF Value™ is NT$33.29, compared to a current price of NT$34.20 — trading 2.7% above its estimated fair value. The current Cash Conversion Cycle is 1,283.40 and 2196.3% above the Construction industry median of 55.89. Longda Construction & Development's overall GF Score™ is 94/100 with 3 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 Longda Construction & Development (TPE:5519), the current Cash Conversion Cycle is 1,283.40 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 Longda Construction & Development (TPE:5519) Overvalued in 2026?
Based on GuruFocus' analysis, Longda Construction & Development stock appears to be overvalued.
The current stock price of NT$34.20 is trading 2.7% above its estimated GF Value™ of NT$33.29.
GuruFocus considers Longda Construction & Development to be Fairly Valued.
Key valuation signals for TPE:5519:
Cash Conversion Cycle: 1,283.40
GF Value™: NT$33.29 vs. price of NT$34.20 (2.7% above fair value)
Industry Position: 2196.3% above the Construction median
No single metric tells the full story. See the TPE:5519 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longda Construction & Development Business Description
Longda Construction & Development Corp is engaged in the integrated construction business of construction and civil engineering, as well as the development, leasing, and sale of residential housing and buildings. The group operates in two reportable segments namely Construction Division: This segment is responsible for comprehensive construction services, including building and civil engineering works. Property Development and Sales Division: This segment is responsible for the development, leasing, and sale of residential and commercial buildings. Geographically it's presence is in Taiwan and Japan regions.
94GF Score
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