Johnan Academic Preparatory Institute (TSE:4720) 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.
Johnan Academic Preparatory Institute Cash Conversion Cycle Related Terms
Johnan Academic Preparatory Institute 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.
Johnan Academic Preparatory Institute Cash Conversion Cycle Chart
TSE:4720 vs EDU, TAL, LAUR: Cash Conversion Cycle Comparison
For the Education & Training Services subindustry, Johnan Academic Preparatory Institute'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.
Johnan Academic Preparatory Institute Cash Conversion Cycle vs Education Industry
For the Education industry and Consumer Defensive sector, Johnan Academic Preparatory Institute's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Johnan Academic Preparatory Institute's Cash Conversion Cycle falls into.
Johnan Academic Preparatory Institute 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.
Johnan Academic Preparatory Institute (TSE:4720) has a Cash Conversion Cycle of 14.60 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Johnan Academic Preparatory Institute and its competitors.
Is Johnan Academic Preparatory Institute's Cash Conversion Cycle too high?
Johnan Academic Preparatory Institute's current Cash Conversion Cycle is 14.60. The Education industry median Cash Conversion Cycle is 9.69. Johnan Academic Preparatory Institute's value of 14.60 is 50.7% above this industry median. Overall, Johnan Academic Preparatory Institute has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Johnan Academic Preparatory Institute's Cash Conversion Cycle compare to EDU and TAL?
Johnan Academic Preparatory Institute's Cash Conversion Cycle of 14.60 can be compared against companies in the Education industry. The industry median Cash Conversion Cycle is 9.69. Johnan Academic Preparatory Institute's value of 14.60 is 50.7% 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 Education company?
The median Cash Conversion Cycle among Education companies is 9.69, based on 256 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. Johnan Academic Preparatory Institute's current Cash Conversion Cycle of 14.60 is 50.7% 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 Johnan Academic Preparatory Institute and its competitors. For the Education industry, the median Cash Conversion Cycle is 9.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnan Academic Preparatory Institute's current Cash Conversion Cycle is 14.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnan Academic Preparatory Institute stock overvalued right now?
Based on GuruFocus' analysis, Johnan Academic Preparatory Institute (TSE:4720) is currently considered Modestly Undervalued. The stock's GF Value™ is 円282.35, compared to a current price of 円238.00 — trading 15.7% below its estimated fair value. The current Cash Conversion Cycle is 14.60 and 50.7% above the Education industry median of 9.69. Johnan Academic Preparatory Institute's overall GF Score™ is 44/100 with 7 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 Johnan Academic Preparatory Institute (TSE:4720), the current Cash Conversion Cycle is 14.60 as of Mar. 2026. 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 Johnan Academic Preparatory Institute (TSE:4720) Overvalued in 2026?
Based on GuruFocus' analysis, Johnan Academic Preparatory Institute stock appears to be undervalued.
The current stock price of 円238.00 is trading 15.7% below its estimated GF Value™ of 円282.35.
GuruFocus considers Johnan Academic Preparatory Institute to be Modestly Undervalued.
Key valuation signals for TSE:4720:
Cash Conversion Cycle: 14.60
GF Value™: 円282.35 vs. price of 円238.00 (15.7% below fair value)
Industry Position: 50.7% above the Education median
No single metric tells the full story. See the TSE:4720 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnan Academic Preparatory Institute Business Description
Johnan Academic Preparatory Institute Inc is a Japan-based company that engages in the education business. It provides learning materials support and electronic learning services for elementary and junior high school students.
44GF Score
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