New Palace International Co's Days Sales Outstanding for the
three
months ended in Dec. 2025 was 6.64.
New Palace International Co's Days Inventory for the
three
months ended in Dec. 2025 was 32.25.
New Palace International Co's Days Payable for the
three
months ended in Dec. 2025 was 36.68.
Therefore, New Palace International Co's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2025 was 2.21.
New Palace International Co (TPE:8940) 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.
New Palace International Co Cash Conversion Cycle Related Terms
New Palace International 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.
New Palace International Co Cash Conversion Cycle Chart
TPE:8940 vs MCD, SBUX, YUM: Cash Conversion Cycle Comparison
For the Restaurants subindustry, New Palace International 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.
New Palace International Co Cash Conversion Cycle vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, New Palace International Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where New Palace International Co's Cash Conversion Cycle falls into.
New Palace International 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.
New Palace International Co'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.
New Palace International Co (TPE:8940) has a Cash Conversion Cycle of 2.21 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on New Palace International Co and its competitors.
Is New Palace International Co's Cash Conversion Cycle too high?
New Palace International Co's current Cash Conversion Cycle is 2.21. Overall, New Palace International Co has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does New Palace International Co's Cash Conversion Cycle compare to MCD and SBUX?
New Palace International Co's Cash Conversion Cycle of 2.21 can be compared against companies in the Restaurants industry. 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 Restaurants company?
A good Cash Conversion Cycle depends on the Restaurants industry context. 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 New Palace International Co and its competitors. New Palace International Co's current Cash Conversion Cycle is 2.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Palace International Co stock overvalued right now?
Based on GuruFocus' analysis, New Palace International Co (TPE:8940) is currently considered Possible Value Trap. The stock's GF Value™ is NT$25.29, compared to a current price of NT$16.60 — trading 34.4% below its estimated fair value. The current Cash Conversion Cycle is 2.21. New Palace International Co's overall GF Score™ is 72/100 with 4 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 New Palace International Co (TPE:8940), the current Cash Conversion Cycle is 2.21 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 New Palace International Co (TPE:8940) Overvalued in 2026?
Based on GuruFocus' analysis, New Palace International Co stock appears to be undervalued.
The current stock price of NT$16.60 is trading 34.4% below its estimated GF Value™ of NT$25.29.
GuruFocus considers New Palace International Co to be Possible Value Trap.
Key valuation signals for TPE:8940:
Cash Conversion Cycle: 2.21
GF Value™: NT$25.29 vs. price of NT$16.60 (34.4% below fair value)
No single metric tells the full story. See the TPE:8940 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Palace International Co Ltd is a Taiwan-based company engaged in the catering industry. Its products and services include the provision of traditional catering services, banquets, and buffets. The company generates the majority of its revenue from Chinese banquet catering, and a small portion of revenue is derived from Other catering services.
72GF Score
Get the complete analysis for TPE:8940
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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