cash conversion cycle
(redirected from Cash Cycles)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 time between an expenditure of money 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.