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.
Laboratorios Farmaceuticos Rovi Cash Conversion Cycle Related Terms
Laboratorios Farmaceuticos Rovi 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.
XMAD:ROVI vs ZTS, UTHR, VTRS: Cash Conversion Cycle Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Laboratorios Farmaceuticos Rovi'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.
Laboratorios Farmaceuticos Rovi Cash Conversion Cycle vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Laboratorios Farmaceuticos Rovi's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Laboratorios Farmaceuticos Rovi'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.
* 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.
Laboratorios Farmaceuticos Rovi (XMAD:ROVI) has a Cash Conversion Cycle of 407.66 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Laboratorios Farmaceuticos Rovi and its competitors.
Is Laboratorios Farmaceuticos Rovi's Cash Conversion Cycle too high?
Laboratorios Farmaceuticos Rovi's current Cash Conversion Cycle is 407.66. The Drug Manufacturers industry median Cash Conversion Cycle is 145.82. Laboratorios Farmaceuticos Rovi's value of 407.66 is 179.6% above this industry median. Overall, Laboratorios Farmaceuticos Rovi has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laboratorios Farmaceuticos Rovi's Cash Conversion Cycle compare to ZTS and UTHR?
Laboratorios Farmaceuticos Rovi's Cash Conversion Cycle of 407.66 can be compared against companies in the Drug Manufacturers industry. The industry median Cash Conversion Cycle is 145.82. Laboratorios Farmaceuticos Rovi's value of 407.66 is 179.6% 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 Drug Manufacturers company?
The median Cash Conversion Cycle among Drug Manufacturers companies is 145.82, based on 949 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. Laboratorios Farmaceuticos Rovi's current Cash Conversion Cycle of 407.66 is 179.6% 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 Laboratorios Farmaceuticos Rovi and its competitors. For the Drug Manufacturers industry, the median Cash Conversion Cycle is 145.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Laboratorios Farmaceuticos Rovi's current Cash Conversion Cycle is 407.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laboratorios Farmaceuticos Rovi stock overvalued right now?
Based on GuruFocus' analysis, Laboratorios Farmaceuticos Rovi (XMAD:ROVI) is currently considered Modestly Overvalued. The stock's GF Value™ is €50.99, compared to a current price of €56.90 — trading 11.6% above its estimated fair value. The current Cash Conversion Cycle is 407.66 and 179.6% above the Drug Manufacturers industry median of 145.82. Laboratorios Farmaceuticos Rovi's overall GF Score™ is 93/100 with 1 warning sign 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 Laboratorios Farmaceuticos Rovi (XMAD:ROVI), the current Cash Conversion Cycle is 407.66 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 Laboratorios Farmaceuticos Rovi (XMAD:ROVI) Overvalued in 2026?
Based on GuruFocus' analysis, Laboratorios Farmaceuticos Rovi stock appears to be overvalued.
The current stock price of €56.90 is trading 11.6% above its estimated GF Value™ of €50.99.
GuruFocus considers Laboratorios Farmaceuticos Rovi to be Modestly Overvalued.
Key valuation signals for XMAD:ROVI:
Cash Conversion Cycle: 407.66
GF Value™: €50.99 vs. price of €56.90 (11.6% above fair value)
Industry Position: 179.6% above the Drug Manufacturers median
No single metric tells the full story. See the XMAD:ROVI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laboratorios Farmaceuticos Rovi Business Description
Laboratorios Farmaceuticos Rovi SA is a biotechnology company engaged in the research, development, manufacturing, and marketing of small molecule and specialty biologic drugs. The company has a diversified portfolio of products that it markets in Spain through its specialized sales force of specialist physicians, hospitals and pharmacies. Laboratorios' research and development pipeline is focused on the expansion of applications, indications, and alternative mechanisms of action for heparin-derived products. The company aims to obtain new pharmaceutical products that enable the regular administration of formulations that are administered daily in chronic and prolonged treatments. Its two segments are Manufacturing and Marketing.
93GF Score
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