The of a firm is the amount of time that elapses from the point when the firm makes an outlay to purchase raw materials to the point when cash is collected from the sale of the finished good.

Question

Quizplus · Accepted Answer

The cash conversion cycle measures the time it takes for a firm to convert its investments in inventory and other resources into cash flow from sales, and is calculated as the average inventory holding period plus the average collection period minus the average payable period.

The of a Firm Is the Amount of Time That