Taiwan Hon Chuan Enterprise Co (TPE:9939) 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.
Taiwan Hon Chuan Enterprise Co Cash Conversion Cycle Related Terms
Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co Cash Conversion Cycle Chart
TPE:9939 vs SW, PKG, IP: Cash Conversion Cycle Comparison
For the Packaging & Containers subindustry, Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co Cash Conversion Cycle vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Taiwan Hon Chuan Enterprise Co's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Taiwan Hon Chuan Enterprise Co's Cash Conversion Cycle falls into.
Taiwan Hon Chuan Enterprise 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.
Taiwan Hon Chuan Enterprise Co (TPE:9939) has a Cash Conversion Cycle of 113.80 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Taiwan Hon Chuan Enterprise Co and its competitors.
Is Taiwan Hon Chuan Enterprise Co's Cash Conversion Cycle too high?
Taiwan Hon Chuan Enterprise Co's current Cash Conversion Cycle is 113.80. The Packaging & Containers industry median Cash Conversion Cycle is 86.58. Taiwan Hon Chuan Enterprise Co's value of 113.80 is 31.4% above this industry median. Overall, Taiwan Hon Chuan Enterprise Co has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Hon Chuan Enterprise Co's Cash Conversion Cycle compare to SW and PKG?
Taiwan Hon Chuan Enterprise Co's Cash Conversion Cycle of 113.80 can be compared against companies in the Packaging & Containers industry. The industry median Cash Conversion Cycle is 86.58. Taiwan Hon Chuan Enterprise Co's value of 113.80 is 31.4% 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 Packaging & Containers company?
The median Cash Conversion Cycle among Packaging & Containers companies is 86.58, based on 389 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. Taiwan Hon Chuan Enterprise Co's current Cash Conversion Cycle of 113.80 is 31.4% 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 Taiwan Hon Chuan Enterprise Co and its competitors. For the Packaging & Containers industry, the median Cash Conversion Cycle is 86.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Hon Chuan Enterprise Co's current Cash Conversion Cycle is 113.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Hon Chuan Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co (TPE:9939) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$147.31, compared to a current price of NT$122.00 — trading 17.2% below its estimated fair value. The current Cash Conversion Cycle is 113.80 and 31.4% above the Packaging & Containers industry median of 86.58. Taiwan Hon Chuan Enterprise Co's overall GF Score™ is 88/100 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 Taiwan Hon Chuan Enterprise Co (TPE:9939), the current Cash Conversion Cycle is 113.80 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 Taiwan Hon Chuan Enterprise Co (TPE:9939) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Hon Chuan Enterprise Co stock appears to be undervalued.
The current stock price of NT$122.00 is trading 17.2% below its estimated GF Value™ of NT$147.31.
GuruFocus considers Taiwan Hon Chuan Enterprise Co to be Modestly Undervalued.
Key valuation signals for TPE:9939:
Cash Conversion Cycle: 113.80
GF Value™: NT$147.31 vs. price of NT$122.00 (17.2% below fair value)
Industry Position: 31.4% above the Packaging & Containers median
No single metric tells the full story. See the TPE:9939 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Hon Chuan Enterprise Co Business Description
Taiwan Hon Chuan Enterprise Co Ltd manufactures and sells a variety of packaging products. Its primary product categories include plastic and aluminum caps used for beverages and can liners, polyethylene terephthalate bottles used to produce water bottles, and labels for consumer products. The Group also sells tobacco and liquor packaging, as well as cigarette filters and paper. In addition, Taiwan Hon Chuan sells packaging equipment used to produce caps, bottles, labels, and fill bottles. Its reportable segments are: Foreign Subsidiaries, which generate the maximum revenue, and Domestic. Geographically, the Group generates maximum revenue from its customers in Taiwan, followed by China, Southeast Asia, and other regions.
88GF Score
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