Shortening the cash conversion cycle means you are more effective at developing, bringing in revenue, and meeting commitments to partners, banks, and loan providers.

In the example, add 64 to 61 to get 125, and then subtract 73 from 125 to get an operating cycle of 52 days. More For You What Effects Does a Longer Accounts Payable Period Have on the Cash ...

For example, divide $2.5 million in inventory by the average daily sales of $30,000 to get an 83-day inventory conversion period. Consider four different methods to decrease the inventory ...