Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Arakawa Chemical Industries's Days Sales Outstanding for the
six
months ended in Mar. 2026 was 112.78.
Arakawa Chemical Industries's Days Inventory for the
six
months ended in Mar. 2026 was 135.07.
Arakawa Chemical Industries's Days Payable for the
six
months ended in Mar. 2026 was 46.62.
Therefore, Arakawa Chemical Industries's Cash Conversion Cycle (CCC) for the
six
months ended in Mar. 2026 was 201.23.
Arakawa Chemical Industries (TSE:4968) 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.
Arakawa Chemical Industries Cash Conversion Cycle Related Terms
Arakawa Chemical Industries 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.
Arakawa Chemical Industries Cash Conversion Cycle Chart
TSE:4968 vs LIN, SHW, ECL: Cash Conversion Cycle Comparison
For the Specialty Chemicals subindustry, Arakawa Chemical Industries'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.
Arakawa Chemical Industries Cash Conversion Cycle vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Arakawa Chemical Industries's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Arakawa Chemical Industries's Cash Conversion Cycle falls into.
Arakawa Chemical Industries 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.
Arakawa Chemical Industries's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 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.
Arakawa Chemical Industries (TSE:4968) has a Cash Conversion Cycle of 201.23 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Arakawa Chemical Industries and its competitors.
Is Arakawa Chemical Industries' Cash Conversion Cycle too high?
Arakawa Chemical Industries' current Cash Conversion Cycle is 201.23. The Chemicals industry median Cash Conversion Cycle is 89.36. Arakawa Chemical Industries' value of 201.23 is 125.2% above this industry median. Overall, Arakawa Chemical Industries has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arakawa Chemical Industries' Cash Conversion Cycle compare to LIN and SHW?
Arakawa Chemical Industries' Cash Conversion Cycle of 201.23 can be compared against companies in the Chemicals industry. The industry median Cash Conversion Cycle is 89.36. Arakawa Chemical Industries' value of 201.23 is 125.2% 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 Chemicals company?
The median Cash Conversion Cycle among Chemicals companies is 89.36, based on 1,579 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. Arakawa Chemical Industries's current Cash Conversion Cycle of 201.23 is 125.2% 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 Arakawa Chemical Industries and its competitors. For the Chemicals industry, the median Cash Conversion Cycle is 89.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arakawa Chemical Industries's current Cash Conversion Cycle is 201.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arakawa Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Arakawa Chemical Industries (TSE:4968) is currently considered Significantly Overvalued. The stock's GF Value™ is 円1,216.22, compared to a current price of 円2,193.00 — trading 80.3% above its estimated fair value. The current Cash Conversion Cycle is 201.23 and 125.2% above the Chemicals industry median of 89.36. Arakawa Chemical Industries' overall GF Score™ is 63/100 with 11 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 Arakawa Chemical Industries (TSE:4968), the current Cash Conversion Cycle is 201.23 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 Arakawa Chemical Industries (TSE:4968) Overvalued in 2026?
Based on GuruFocus' analysis, Arakawa Chemical Industries stock appears to be overvalued.
The current stock price of 円2,193.00 is trading 80.3% above its estimated GF Value™ of 円1,216.22.
GuruFocus considers Arakawa Chemical Industries to be Significantly Overvalued.
Key valuation signals for TSE:4968:
Cash Conversion Cycle: 201.23
GF Value™: 円1,216.22 vs. price of 円2,193.00 (80.3% above fair value)
Industry Position: 125.2% above the Chemicals median
No single metric tells the full story. See the TSE:4968 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arakawa Chemical Industries Ltd is engaged in the production and sales of paper chemicals, resins for printing inks, resins for adhesives/adhesives, and intermediates for electronic materials. It manufactures various paper chemicals including water-repellents, sizing agents, paper surface improving agents, and paper strengthening, and other types of papers. It also provides printing inks for offset printing; book (magazine)-gravures and food-package-gravures. It also offers electronic materials, including rosins for use as raw material of chemicals and electronic components.
63GF Score
Get the complete analysis for TSE:4968
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSE:4968 has been successfully added to your 
