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Sourcenext's Days Sales Outstanding for the
three
months ended in Dec. 2025 was 42.28.
Sourcenext's Days Inventory for the
three
months ended in Dec. 2025 was 158.76.
Sourcenext's Days Payable for the
three
months ended in Dec. 2025 was 22.51.
Therefore, Sourcenext's Cash Conversion Cycle (CCC) for the
three
months ended in Dec. 2025 was 178.53.
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.
Sourcenext Cash Conversion Cycle Related Terms
Sourcenext Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Sourcenext'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:4344 vs UBER, SHOP, CRM: Cash Conversion Cycle Comparison
For the Software - Application subindustry, Sourcenext'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.
Sourcenext Cash Conversion Cycle vs Software Industry
For the Software industry and Technology sector, Sourcenext's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Sourcenext'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.
Sourcenext's Cash Conversion Cycle for the fiscal year that ended in Mar. 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.
Sourcenext (TSE:4344) has a Cash Conversion Cycle of 178.53 as of Dec. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Sourcenext and its competitors.
Is Sourcenext's Cash Conversion Cycle too high?
Sourcenext's current Cash Conversion Cycle is 178.53. The Software industry median Cash Conversion Cycle is 32.17. Sourcenext's value of 178.53 is 455% above this industry median. Overall, Sourcenext has a GF Score™ of 35/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Sourcenext's Cash Conversion Cycle compare to UBER and SHOP?
Sourcenext's Cash Conversion Cycle of 178.53 can be compared against companies in the Software industry. The industry median Cash Conversion Cycle is 32.17. Sourcenext's value of 178.53 is 455% 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 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. Sourcenext's current Cash Conversion Cycle of 178.53 is 455% 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 Sourcenext 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. Sourcenext's current Cash Conversion Cycle is 178.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sourcenext stock overvalued right now?
Based on GuruFocus' analysis, Sourcenext (TSE:4344) is currently considered Possible Value Trap. The stock's GF Value™ is 円205.54, compared to a current price of 円105.00 — trading 48.9% below its estimated fair value. The current Cash Conversion Cycle is 178.53 and 455% above the Software industry median of 32.17. Sourcenext's overall GF Score™ is 35/100 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 Sourcenext (TSE:4344), the current Cash Conversion Cycle is 178.53 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 Sourcenext (TSE:4344) Overvalued in 2026?
Based on GuruFocus' analysis, Sourcenext stock appears to be undervalued.
The current stock price of 円105.00 is trading 48.9% below its estimated GF Value™ of 円205.54.
GuruFocus considers Sourcenext to be Possible Value Trap.
Key valuation signals for TSE:4344:
Cash Conversion Cycle: 178.53
GF Value™: 円205.54 vs. price of 円105.00 (48.9% below fair value)
No single metric tells the full story. See the TSE:4344 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sourcenext Corp plans, develops and sells personal computer software. Its software development methods include in-house development, outsourcing development and commercialization of products by acquiring licenses from other companies.
35GF Score
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