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Concept9 min read
Cash Conversion Cycle
The cash conversion cycle measures how many days it takes a company to turn cash outlays on inventory into cash received from customers. It is the definitive metric for working-capital efficiency.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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