Westinghouse Air Brake Technologies (NYSE:WAB) 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.
Westinghouse Air Brake Technologies Cash Conversion Cycle Related Terms
Westinghouse Air Brake Technologies 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.
Westinghouse Air Brake Technologies Cash Conversion Cycle Chart
WAB vs NSC, CSX, TRN: Cash Conversion Cycle Comparison
For the Railroads subindustry, Westinghouse Air Brake Technologies'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.
Westinghouse Air Brake Technologies Cash Conversion Cycle vs Transportation Industry
For the Transportation industry and Industrials sector, Westinghouse Air Brake Technologies's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Westinghouse Air Brake Technologies's Cash Conversion Cycle falls into.
Westinghouse Air Brake Technologies 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.
Westinghouse Air Brake Technologies (WAB) has a Cash Conversion Cycle of 116.31 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Westinghouse Air Brake Technologies and its competitors.
Is Westinghouse Air Brake Technologies' Cash Conversion Cycle too high?
Westinghouse Air Brake Technologies' current Cash Conversion Cycle is 116.31. The Transportation industry median Cash Conversion Cycle is 20.26. Westinghouse Air Brake Technologies' value of 116.31 is 474.2% above this industry median. Overall, Westinghouse Air Brake Technologies has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Westinghouse Air Brake Technologies' Cash Conversion Cycle compare to NSC and CSX?
Westinghouse Air Brake Technologies' Cash Conversion Cycle of 116.31 can be compared against companies in the Transportation industry. The industry median Cash Conversion Cycle is 20.26. Westinghouse Air Brake Technologies' value of 116.31 is 474.2% 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 Transportation company?
The median Cash Conversion Cycle among Transportation companies is 20.26, based on 1,008 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. Westinghouse Air Brake Technologies's current Cash Conversion Cycle of 116.31 is 474.2% 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 Westinghouse Air Brake Technologies and its competitors. For the Transportation industry, the median Cash Conversion Cycle is 20.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westinghouse Air Brake Technologies's current Cash Conversion Cycle is 116.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westinghouse Air Brake Technologies stock overvalued right now?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies (WAB) is currently considered Modestly Overvalued. The stock's GF Value™ is $212.55, compared to a current price of $269.53 — trading 26.8% above its estimated fair value. The current Cash Conversion Cycle is 116.31 and 474.2% above the Transportation industry median of 20.26. Westinghouse Air Brake Technologies' overall GF Score™ is 89/100 with 8 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 Westinghouse Air Brake Technologies (WAB), the current Cash Conversion Cycle is 116.31 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 Westinghouse Air Brake Technologies (WAB) Overvalued in 2026?
Based on GuruFocus' analysis, Westinghouse Air Brake Technologies stock appears to be overvalued.
The current stock price of $269.53 is trading 26.8% above its estimated GF Value™ of $212.55.
GuruFocus considers Westinghouse Air Brake Technologies to be Modestly Overvalued.
Key valuation signals for WAB:
Cash Conversion Cycle: 116.31
GF Value™: $212.55 vs. price of $269.53 (26.8% above fair value)
Industry Position: 474.2% above the Transportation median
No single metric tells the full story. See the WAB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Westinghouse Air Brake Technologies Business Description
Westinghouse Air Brake Technologies Corp provides value-added, technology-based products and services for the freight rail and passenger transit industries and the mining, marine, and industrial markets. It provides its products and services through two main business segments: Freight and Transit. The company generates maximum revenue from the Freight segment, which manufactures new and modernized locomotives, provides aftermarket parts and services to existing locomotives, provides components to new and existing freight cars; builds new commuter locomotives; supplies rail control and infrastructure products, including electronics, positive train control equipment, signal design, and engineering services. Geographically, it generates a majority of its revenue from the United States.
89GF Score
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