1. Cash Conversion Cycle

2. Accounts payable
Commonly, a supplier will ship a product, issue an invoice, and collect payment later, which describes a cash conversion cycle, a period of time during which the supplier has already paid for raw materials but hasn't been paid in return by the final customer.

3. Corporate finance - Working capital
The cash conversion cycle indicates the firm's ability to convert its resources into cash

4. Corporate finance - Management of working capital
credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and allowances

5. Corporate finance - Management of working capital
* 'Short term financing'. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to convert debtors to cash through Factoring (trade)|factoring.

6. Working capital - Decision criteria
*One measure of cash flow is provided by the cash conversion cycle—the net number of days from the outlay of cash for raw material to receiving payment from the customer

7. Working capital - Decision criteria
*Credit policy of the firm: Another factor affecting working capital management is credit policy of the firm. It includes buying of raw material and selling of finished goods either in cash or on credit. This affects the cash conversion cycle.

8. Working capital - Management of working capital
*'Debtors management'. Identify the appropriate Credit (finance)|credit policy, i.e. credit terms which will attract customers, such that any impact on cash flows and the cash conversion cycle will be offset by increased revenue and hence Return on Capital (or vice versa); see Discounts and allowances.

9. Working capital - Management of working capital
*'Short term financing'. Identify the appropriate source of financing, given the cash conversion cycle: the inventory is ideally financed by credit granted by the supplier; however, it may be necessary to utilize a bank loan (or overdraft), or to convert debtors to cash through Factoring (finance)|factoring.

10. Cash conversion cycle
In management accounting, the 'Cash conversion cycle' ('CCC') measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand customer sales.[ Cash Conversion Cycle (Operating Cycle)] It is thus a measure of the liquidity risk entailed by growth.[ Cash and Working Capital Management] However, shortening the CCC creates its own risks: while a firm could even achieve a negative CCC by collecting from customers before paying suppliers, a policy of strict collections and tax payments is not always sustainable.

11. Cash conversion cycle - Derivation
'Cashflows insufficient.' The term Cash Conversion Cycle refers to the timespan between a firm's disbursing and collecting cash. However, the CCC cannot be directly observed in cashflows, because these are also influenced by investment and financing activities; it must be derived from Statement of Financial Position data associated with the firm's operations.

12. Cash conversion cycle - Derivation
'Equation describes retailer.' Although the term cash conversion cycle technically applies to a firm in any industry, the equation is generically formulated to apply specifically to a retailer. Since a retailer's operations consist in buying and selling inventory, the equation models the time between

13. Cash conversion cycle - Derivation
*the 'Cash conversion cycle' emerges as interval C→D (i.e. disbursing cash→collecting cash).

14. Cash conversion cycle - Aims of CCC
Cash flow statement and cash conversion cycle study will be helpful for cash flow analysis.[ The Cash Conversion Cycle by CI Staff] The CCC readings can be compared among different companies in the same industry segment to evaluate the quality of cash management.[ Cash to Cash Cycle]

15. * Cash conversion cycle, a business and accounting concept
CCC - Other
* Cash conversion cycle, a business and accounting concept

16. Drop shipping - Benefits
Two significant benefits of drop shipping are the elimination of upfront inventory and a positive Cash conversion cycle|cash-flow cycle. A positive cash flow cycle occurs because the seller is paid when the purchase is made. The seller usually pays the wholesaler using a credit card or credit terms. Therefore, there is a period of time in which the seller has the customer's money, but has not yet paid the wholesaler.

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