Cash Cycles financial definition of Cash Cycles
cash conversion cycle (redirected from Cash Cycles)
Cash Conversion Cycle
The time between an expenditure
to make a product and the collection of accounts receivable
from the sale
of that product. Obviously, a shorter cash conversion cycle is preferable. A longer cash conversion cycle may indicate a current or potential problem with cash flow
cash conversion cycle
The time required for a business to turn purchases into cash receipts from customers. A short cycle allows a business to quickly acquire cash that can be used for additional purchases or debt repayment.
References in periodicals archive
Highly-leveraged businesses need to focus on generating cash to service the debt and their financial executives needed to understand the drivers of cash flow--expense control, short cash to cash cycles
and stingy reinvestment practices.