Cash conversion cycle

What is the Cash conversion cycle?

Cash conversion cycle is a metric that shows how quickly a company can convert its investments in inventory and other resources into cash flows from sales. It takes into account how much time a company may need to sell its inventory, collect receivables, and how long it has to pay its bills without incurring penalties.

What does Cash conversion cycle mean?

A negative figure suggests a company is able to receive payments for product sales before having to pay suppliers. A trend of decreasing or steady Cash conversion cycle values over multiple periods is a good sign, while rising values usually lead to more investigation and analysis based on other factors. Keep in mind that the Cash conversion cycle only applies to select sectors dependent on inventory management and related operations.

Laman Utama Penyaring Saham Penyaring Forex Penyaring Kripto Kalendar Ekonomi Bagaimana ia berfungsi Ciri-ciri Carta Harga Rujuk rakan Peraturan Dalaman Pusat Bantuan Laman web dan Penyelesaian Broker Widget Penyelesaian Pencartaan Perpustakaan Pencartaan yang Ringan Blog & Berita Twitter
Profil Tetapan Profil Akaun dan Pengebilan Kawan-kawan yang dirujuk Coin Tiket Sokongan Saya Pusat Bantuan Idea yang diterbitkan Pengikut Mengikuti Mesej Peribadi Sembang Daftar Keluar