Cash Conversion Cycle Stages
Cash is the lifeblood of business. Managing the accumulation, flow and disbursement of cash is critical to the success of every business. How can your business become more efficient? By leveraging your operating cycle for optimal cash flow. At Fox Chase Bank, we can help measure your cash conversion cycle to identify opportunities for improvement. Our Cash Management Solutions team members are implementation specialists who can make it happen for your business.
The business cash conversion cycle is measured in three stages:
To the extent that your company uses credit to finance accounts receivable, the length of the cycle time is diminished. All of the information needed to calculate your cash conversion cycle comes from your company's balance sheet and income statement.