Webco Industries's Days Sales Outstanding for the
six
months ended in Jul. 2023 was 38.51.
Webco Industries's Days Inventory for the
six
months ended in Jul. 2023 was 115.71.
Webco Industries's Days Payable for the
six
months ended in Jul. 2023 was 20.44.
Therefore, Webco Industries's Cash Conversion Cycle (CCC) for the
six
months ended in Jul. 2023 was 133.78.
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.
Webco Industries Cash Conversion Cycle Related Terms
Webco Industries Cash Conversion Cycle Historical Data
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The historical data trend for Webco Industries'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.
WEBC vs ACNT, FRD, LUD: Cash Conversion Cycle Comparison
For the Steel subindustry, Webco 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.
Webco Industries Cash Conversion Cycle vs Steel Industry
For the Steel industry and Basic Materials sector, Webco Industries's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Webco Industries'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.
Webco Industries's Cash Conversion Cycle for the fiscal year that ended in Jul. 2023 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.
Webco Industries (WEBC) has a Cash Conversion Cycle of 133.78 as of Jul. 2023. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Webco Industries and its competitors.
Is Webco Industries' Cash Conversion Cycle too high?
Webco Industries' current Cash Conversion Cycle is 133.78. The Steel industry median Cash Conversion Cycle is 94.50. Webco Industries' value of 133.78 is 41.6% above this industry median. Overall, Webco Industries has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Webco Industries' Cash Conversion Cycle compare to ACNT and FRD?
Webco Industries' Cash Conversion Cycle of 133.78 can be compared against companies in the Steel industry. The industry median Cash Conversion Cycle is 94.50. Webco Industries' value of 133.78 is 41.6% 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 Steel company?
The median Cash Conversion Cycle among Steel companies is 94.50, based on 610 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. Webco Industries's current Cash Conversion Cycle of 133.78 is 41.6% 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 Webco Industries and its competitors. For the Steel industry, the median Cash Conversion Cycle is 94.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Webco Industries's current Cash Conversion Cycle is 133.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Webco Industries stock overvalued right now?
Webco Industries (WEBC) has a current Cash Conversion Cycle of 133.78. The current Cash Conversion Cycle is 133.78 and 41.6% above the Steel industry median of 94.50. Webco Industries' overall GF Score™ is 12/100. 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 Webco Industries (WEBC), the current Cash Conversion Cycle is 133.78 as of Jul. 2023. 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.
Webco Industries Inc is a specialty manufacturer and seller of high-quality carbon and stainless steel tubing products that are designed to industry and customer specifications. The company's products includes Welded tubing; Cold drawn- Welded and Cold drawn- Seamless. Its value-added services include bending, custom mill length, end formed/swaged, finning, heat treating, packaging, precision cutting, product availability and responsiveness.
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