Cash Conversion Cycle
Cash-conversion cycle, also known as the asset conversion cycle, net operating cycle, working capital cycle or just cash cycle, is used in the financial analysis of a business. The higher the number, the longer a firm's money is tied up in business operations and unavailable for other activities such as investing. The Cash-conversion cycle is the number of days between paying for raw materials and receiving cash from selling goods made from that raw material.
See Also
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Cash conversion cycle
