Cash conversion cycle: Difference between revisions
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For example in a manufacturing firm, the average length of time between payment for raw materials and other inputs, and the receipt of cash from the firm's customers. | For example in a manufacturing firm, the average length of time between payment for raw materials and other inputs, and the receipt of cash from the firm's customers. | ||
The shorter the time, the less funding a company has to find. | |||
Revision as of 16:54, 19 November 2018
(CCC).
Indicates how long it takes a company to convert cash outflows into cash inflows.
For example in a manufacturing firm, the average length of time between payment for raw materials and other inputs, and the receipt of cash from the firm's customers.
The shorter the time, the less funding a company has to find.
