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  • Illustration of Operating and Cash Conversion Cycles

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    Sim Pack
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    The operating cycle shows the time period between paying for inventory and collecting cash from sales. The cash conversion cycle compares the operating cycle to payment terms, showing the time between paying suppliers and collecting cash from customers. Together these cycles illustrate how efficiently a company manages its cash flows from production to sales.

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    for operating and cash conversion cycle

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    Operating&CashConversionCycle

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    The operating cycle shows the time period between paying for inventory and collecting cash from sales. The cash conversion cycle compares the operating cycle to payment terms, showing the time between paying suppliers and collecting cash from customers. Together these cycles illustrate how efficiently a company manages its cash flows from production to sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    13 views1 page

    Illustration of Operating and Cash Conversion Cycles

    Uploaded by

    Sim Pack
    The operating cycle shows the time period between paying for inventory and collecting cash from sales. The cash conversion cycle compares the operating cycle to payment terms, showing the time between paying suppliers and collecting cash from customers. Together these cycles illustrate how efficiently a company manages its cash flows from production to sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Illustration of Operating and Cash Conversion Cycles

    Source:
    Gitman, Lawrence J. (2003). Principles of Managerial Finance, 10th edition.

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