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.

Strona główna Skaner akcji Skaner Forex Skaner Krypto Kalendarz ekonomiczny Jak to działa Funkcje wykresów Cennik Poleć przyjaciela Dobre Praktyki Centrum Pomocy Rozwiązania internetowe i brokerskie Widżety Wykresy Lekka Biblioteka Wykresów Blog i wiadomości Twitter
Profil Ustawienia profilu Konto i płatności Poleceni znajomi Monety Wiadomości do działu obsługi Centrum Pomocy Opublikowane Pomysły Obserwujący Obserwujesz Wiadomość prywatna Czat Wyloguj