Johnson Controls International (XTER:TYIA) 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.
Johnson Controls International Cash Conversion Cycle Related Terms
Johnson Controls International 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.
Johnson Controls International Cash Conversion Cycle Chart
XTER:TYIA vs TT, CARR, LII: Cash Conversion Cycle Comparison
For the Building Products & Equipment subindustry, Johnson Controls International'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.
Johnson Controls International Cash Conversion Cycle vs Construction Industry
For the Construction industry and Industrials sector, Johnson Controls International's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Johnson Controls International's Cash Conversion Cycle falls into.
Johnson Controls International 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.
Johnson Controls International (XTER:TYIA) has a Cash Conversion Cycle of 55.28 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Johnson Controls International and its competitors.
Is Johnson Controls International's Cash Conversion Cycle too high?
Johnson Controls International's current Cash Conversion Cycle is 55.28. The Construction industry median Cash Conversion Cycle is 55.81. Johnson Controls International's value of 55.28 is 0.9% below this industry median. Overall, Johnson Controls International has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Controls International's Cash Conversion Cycle compare to TT and CARR?
Johnson Controls International's Cash Conversion Cycle of 55.28 can be compared against companies in the Construction industry. The industry median Cash Conversion Cycle is 55.81. Johnson Controls International's value of 55.28 is 0.9% below 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 Construction company?
The median Cash Conversion Cycle among Construction companies is 55.81, based on 1,763 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. Johnson Controls International's current Cash Conversion Cycle of 55.28 is 0.9% below 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 Johnson Controls International and its competitors. For the Construction industry, the median Cash Conversion Cycle is 55.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson Controls International's current Cash Conversion Cycle is 55.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Controls International stock overvalued right now?
Based on GuruFocus' analysis, Johnson Controls International (XTER:TYIA) is currently considered Significantly Overvalued. The stock's GF Value™ is €88.59, compared to a current price of €127.75 — trading 44.2% above its estimated fair value. The current Cash Conversion Cycle is 55.28 and 0.9% below the Construction industry median of 55.81. Johnson Controls International's overall GF Score™ is 71/100 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 Johnson Controls International (XTER:TYIA), the current Cash Conversion Cycle is 55.28 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 Johnson Controls International (XTER:TYIA) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Controls International stock appears to be overvalued.
The current stock price of €127.75 is trading 44.2% above its estimated GF Value™ of €88.59.
GuruFocus considers Johnson Controls International to be Significantly Overvalued.
Key valuation signals for XTER:TYIA:
Cash Conversion Cycle: 55.28
GF Value™: €88.59 vs. price of €127.75 (44.2% above fair value)
Industry Position: 0.9% below the Construction median
No single metric tells the full story. See the XTER:TYIA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Controls International Business Description
Following Johnson Controls' divestiture of its residential and light commercial HVAC businesses to Bosch in 2025, nearly all of its revenue comes from commercial HVAC (60%) and fire and security products and services (40%). A 2016 merger joined Johnson Controls' HVAC and Tyco's fire and security businesses with the premise that there is synergy in offering a broader variety of automation products and solutions to commercial buildings. We estimate Johnson Controls' pro forma revenue mix will be one-third products, one-third installation, and one-third services.
71GF Score
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