cash conversion cycle


Also found in: Dictionary, Thesaurus, Medical, Acronyms, Wikipedia.
Related to cash conversion cycle: Operating cycle, Days Sales Outstanding

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.
Mentioned in ?
References in periodicals archive ?
H04: High Cash Conversion Cycle of the firm decrease sales.
Can Working Capital Cycle or Cash Conversion Cycle be Factored in Economic Performance of Pakistani Corporate Firms?
The purpose of effective WCM is to reduce cash conversion cycle (CCC) to the acceptable optimal point which suites firm's requirement (Hager, 1976).
IMPACT OF WORKING CAPITAL MANAGEMENT ON FIRM PROFITABILITY: EVIDENCE FROM SCANDINAVIAN COUNTRIES
Shortening the cash conversion cycle also leads to improved profitability.
The relationship between cash conversion cycle and economic value added in Tehran stock exchange
The length of cash conversion cycle is used to measure the impact of accounts receivable, inventories and payments to supplier on the firm's profitability, cash conversion cycle assist in measuring the performance and current assets management of the firm's (Uyar, 2009).
Cash conversion cycle and its impact upon firm performance: an evidence from cement industry of Pakistan
5: Determinants of Cash Conversion Cycle (CCC) in Latin American Companies These are the results of estimating equation (7).
Determinants of working capital management in Latin American companies/Determinantes de la gestion del capital de trabajo en Latinoamerica/Facteurs determinants de la gestion du capital de travail en amerique latine/Determinantes da gestao do capital de trabalho na America Latina
They reported that there was a significant evidence of a negative relationship between gross profit and cash conversion cycle.
Does technology reduce the working capital requirements of businesses? An exploratory study
Shin and Soenen (1998), in an anecdotal example, utilize a variable, the Net Trade Cycle (NTC), which expresses the three components of the cash conversion cycle as a percentage of sales.
The corporate soap-opera "as the cash turns": management of working capital and potential external financing needs
This is followed by the development of hypotheses around the relationships between cash conversion cycle and capital requirements, liquidity, and returns, and how this may change over time.
Cash conversion cycle management in small firms: relationships with liquidity, invested capital, and firm performance
Calculate the company's cash conversion cycle for 2005, 2006 and 2007.
Cape Chemical: cash and profits.(Instructor's Note)
1996) examined the relationship between aggressive working capital management and profitability of US firms using Cash Conversion Cycle (CCC) as a measure of working capital management where a shorter CCC represents the aggressiveness of working capital management.
Working capital management and firm's performance--a study of Indian manufaturing companies
Going on prepaid terms drastically impacts their cash conversion cycle.
It's the credit, stupid!

Financial browser ?
Full browser ?