Having looked at how we can standardize and calculate a company’s ability to convert its inventory into cash through the cash conversion cycle metric, we can now go into detail about the nuances of interpreting how it is that we would use this metric to gain insights into the … [Read more...]
How to Calculate a Company’s Cash Conversion Cycle
Filed Under: Cash Conversion by
The fundamental quality of an investment opportunity is a function of that particular company’s ability to convert inventory into cash more efficiently than its competitors. This capacity for generating cash from sales represents a factor known as the Cash Conversion Cycle of the … [Read more...]
Cash Conversion Cycle
Filed Under: c by
Cash Conversion Cycle The length of time between a firm's purchase of inventory and the receipt of cash from accounts receivable. … [Read more...]