Cash Conversion Cycle

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Cash conversion cycle

Cash cycle = Operating cycle – Payable period


Network effects
• The Flipkart platform can be broadly classified into two groups of users:
1. The buyers who are looking for wide variety of product at a single place (Group1)
2. The affiliates who are looking to market and sell their products (Group 2)
• Both user groups have different requirements. The derived value for the
second group will go up if there are more customers visiting Flipkart in
search of savings and variety of products and the derived value for the
first group would go up if there are a large number of suppliers providing
different products.

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