cash conversion cycle

Definition

The length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product. also called cash cycle.

Use this term in a sentence

The cash conversion cycle was a process that took some time, but it was definitely productive and interesting to watch unfold.

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They were trying to reduce their days in the cash conversion cycle by improving efficiencies in production so it would get to market sooner.

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The cash conversion cycle for the our Caterpillar dealer is about two days on credit card purchases, however, cash can take up to two weeks because it has to be deposited by our secretary.

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cash control days inventory