Efficiency Indicators: The Cash Conversion Cycle
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Efficiency Indicators: The Cash Conversion Cycle

The 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.
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