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SHANON's Days Sales Outstanding for the
three
months ended in Oct. 2025 was 27.95.
SHANON's Days Inventory for the
three
months ended in Oct. 2025 was 12.03.
SHANON's Days Payable for the
three
months ended in Oct. 2025 was 14.89.
Therefore, SHANON's Cash Conversion Cycle (CCC) for the
three
months ended in Oct. 2025 was 25.09.
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.
SHANON Cash Conversion Cycle Related Terms
SHANON Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for SHANON'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.
TSE:3976 vs UBER, SHOP, CRM: Cash Conversion Cycle Comparison
For the Software - Application subindustry, SHANON'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.
SHANON Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, SHANON's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where SHANON'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.
SHANON's Cash Conversion Cycle for the fiscal year that ended in Oct. 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.
SHANON (TSE:3976) has a Cash Conversion Cycle of 25.09 as of Oct. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on SHANON and its competitors.
Is SHANON's Cash Conversion Cycle too high?
SHANON's current Cash Conversion Cycle is 25.09. The Software industry median Cash Conversion Cycle is 32.17. SHANON's value of 25.09 is 22% below this industry median. Overall, SHANON has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SHANON's Cash Conversion Cycle compare to UBER and SHOP?
SHANON's Cash Conversion Cycle of 25.09 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.17. SHANON's value of 25.09 is 22% below 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 Software company?
The median Cash Conversion Cycle among Software companies is 32.17, based on 2,807 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. SHANON's current Cash Conversion Cycle of 25.09 is 22% below 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 SHANON and its competitors. For the Software industry, the median Cash Conversion Cycle is 32.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SHANON's current Cash Conversion Cycle is 25.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SHANON stock overvalued right now?
Based on GuruFocus' analysis, SHANON (TSE:3976) is currently considered Significantly Overvalued. The stock's GF Value™ is 円230.27, compared to a current price of 円567.00 — trading 146.2% above its estimated fair value. The current Cash Conversion Cycle is 25.09 and 22% below the Software industry median of 32.17. SHANON's overall GF Score™ is 51/100 with 6 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 SHANON (TSE:3976), the current Cash Conversion Cycle is 25.09 as of Oct. 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 SHANON (TSE:3976) Overvalued in 2026?
Based on GuruFocus' analysis, SHANON stock appears to be overvalued.
The current stock price of 円567.00 is trading 146.2% above its estimated GF Value™ of 円230.27.
GuruFocus considers SHANON to be Significantly Overvalued.
Key valuation signals for TSE:3976:
Cash Conversion Cycle: 25.09
GF Value™: 円230.27 vs. price of 円567.00 (146.2% above fair value)
No single metric tells the full story. See the TSE:3976 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SHANON Inc provides marketing platform and cloud application. It is engaged in the planning, development, and sale of cloud marketing solutions. It is also engaged in the provision of consulting and outsourcing services related to marketing.
51GF Score
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