An inventory conversion period is equal to the number of days between the date that materials are acquired and the date that a product or service is sold. The inventory conversion period is calculated ...
Jim Mueller, CFA, began his career as a scientist. He has five years of experience as a senior analyst and another four years as a research analyst. Amy is an ACA and the CEO and founder of OnPoint ...
Money is tied up in inventory until it can be sold. As a result, cash invested in the inventory is not available for alternative uses. Maintaining a short operating cycle and cash conversion cycle are ...
So how is an investor to track the efficiency of managing inventory, accounts receivable and accounts payable? Enter the Cash Conversion Cycle (CCC). The cash conversion cycle is the theoretical ...