cash conversion cycle investment & finance definition
The time required for a business to turn purchases into cash receipts from customers.
Cash Conversion Cycle Calculation
To calculate the cash conversion cycle, you can use the following formula: ...
the Cash Conversion Cycle emerges as interval Câ†'D (i.e. disbursing cashâ†'collecting cash).
the payables conversion period (or "Days payables outstanding") emerges as interval Aâ†'C (i.e. owing cashâ†'disbursing cash) ...
Definition
Cash conversion cycle
The length of time between the payment of payables and the collection of receivables.
RELATED TERMS ...
The problem with the cash conversion cycle may be in the area of Accounts Receivable, if some customers are taking longer to pay outstanding invoices for the delivered goods.
Cash conversion cycle
The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable.
cash conversion cycle The length of time between the purchase of raw materials and the collection... cash cow A Cash-Cow is a business or product which generates a steady, dependable flow... cash credit A short-term cash loan to a firm.
Understanding The Cash Conversion Cycle
Learn how to correctly analyze a company's liquidity and beat the average investor. The Working Capital Position ...
 See also: Cash, Conversion, Cycle, Sales, Average
  
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