Formosa Petrochemical's Days Sales Outstanding for the
three
months ended in Dec. 2025 was 26.35.
Formosa Petrochemical's Days Inventory for the
three
months ended in Dec. 2025 was 43.17.
Formosa Petrochemical's Days Payable for the
three
months ended in Dec. 2025 was 10.64.
Therefore, Formosa Petrochemical's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2025 was 58.88.
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 Petrochemical Cash Conversion Cycle Related Terms
Formosa Petrochemical Cash Conversion Cycle Historical Data
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The historical data trend for Formosa Petrochemical's Cash Conversion Cycle can be seen below:
* 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.
TPE:6505 vs VLO, MPC, PSX: Cash Conversion Cycle Comparison
For the Oil & Gas Refining & Marketing subindustry, Formosa Petrochemical'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 Petrochemical Cash Conversion Cycle vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Formosa Petrochemical's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Formosa Petrochemical's Cash Conversion Cycle falls into.
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 Petrochemical'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 Petrochemical (TPE:6505) has a Cash Conversion Cycle of 58.88 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Formosa Petrochemical and its competitors.
Is Formosa Petrochemical's Cash Conversion Cycle too high?
Formosa Petrochemical's current Cash Conversion Cycle is 58.88. The Oil & Gas industry median Cash Conversion Cycle is 18.26. Formosa Petrochemical's value of 58.88 is 222.5% above this industry median. Overall, Formosa Petrochemical has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Formosa Petrochemical's Cash Conversion Cycle compare to VLO and MPC?
Formosa Petrochemical's Cash Conversion Cycle of 58.88 can be compared against companies in the Oil & Gas industry. The industry median Cash Conversion Cycle is 18.26. Formosa Petrochemical's value of 58.88 is 222.5% 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 an Oil & Gas company?
The median Cash Conversion Cycle among Oil & Gas companies is 18.26, based on 916 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. Formosa Petrochemical's current Cash Conversion Cycle of 58.88 is 222.5% 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 Formosa Petrochemical and its competitors. For the Oil & Gas industry, the median Cash Conversion Cycle is 18.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Petrochemical's current Cash Conversion Cycle is 58.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Petrochemical stock overvalued right now?
Based on GuruFocus' analysis, Formosa Petrochemical (TPE:6505) is currently considered Fairly Valued. The stock's GF Value™ is NT$57.66, compared to a current price of NT$58.90 — trading 2.2% above its estimated fair value. The current Cash Conversion Cycle is 58.88 and 222.5% above the Oil & Gas industry median of 18.26. Formosa Petrochemical's overall GF Score™ is 85/100 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 Formosa Petrochemical (TPE:6505), the current Cash Conversion Cycle is 58.88 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 Petrochemical (TPE:6505) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Petrochemical stock appears to be overvalued.
The current stock price of NT$58.90 is trading 2.2% above its estimated GF Value™ of NT$57.66.
GuruFocus considers Formosa Petrochemical to be Fairly Valued.
Key valuation signals for TPE:6505:
Cash Conversion Cycle: 58.88
GF Value™: NT$57.66 vs. price of NT$58.90 (2.2% above fair value)
Industry Position: 222.5% above the Oil & Gas median
No single metric tells the full story. See the TPE:6505 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Petrochemical Corp engages in the Operation of refinery of petroleum and integrated manufacture of hydrocarbon. The firm operates in two segments. The Petrochemical segment that derives majority revenue engages in producing and selling petroleum, and petrochemical products. The Public utility segment engages in producing and selling water, electricity, and steam. Its product offerings comprise gasoline, jet fuel, kerosene, fuel oil, asphalt, sulfur, lubricant, diesel, naphtha, and liquid petroleum gas.
85GF Score
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