Interactive
Efficiency Indicators: The Cash Conversion Cycle
Biz Library
Updated Feb 04, 2019The cash conversion cycle is a handy efficiency indicator for a business because it gives an estimate of how efficiently a business is managing its cash and working capital. Nicole Thibodeau describes the cash conversion cycle and provides a method of calculating a business's cash cycle. She also explains why it's important to compare the cash cycle of a business to itself over time as well as across the industry.
