Stockopedia | Share Prices, Share News and Company Research

Glossary > Cash Conversion Cycle

Cash Conversion Cycle

What does Cash Conversion Cycle mean?

Shows how long cash is tied up in the working capital cycle from the first investment in inventory to the collection of accounts receivable from the sale of that product.



Stockopedia explains Cash Conversion Cycle...

Obviously, a shorter cash conversion cycle is preferable. A longer cash conversion cycle may indicate a current or potential problem with cash flow.