Cash Conversion Cycle

The length of time between the firm's actual cash expenditures on productive resources (materials and labor) and its own cash receipts from the sale of products (that is, the length of time between paying for labor and materials and collecting on receivables).  Thus, the cash conversion cycle equals the length of time the firm has funds tied up in current assets.
Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.
Powered by Zendesk