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.

首頁 股票篩選器 外匯篩選器 加密貨幣篩選器 全球財經日曆 如何運作 圖表功能 價格 推薦朋友 網站規則 幫助中心 網站 & 經紀商解決方案 小工具 圖表解決方案 輕量圖表庫 部落格 & 新聞 推特
概覽 個人資料設定 賬戶和賬單 推薦朋友 代幣 我的客服工單 幫助中心 發表的想法 粉絲 正在關注 私人訊息 在線聊天 登出