Understanding the Cash Conversion Cycle for Business

Course details

The cash conversion cycle isn’t just another accounting metric, it’s a crystal ball into a company’s financial health and risk profile. A successful business professional who understands the cash conversion cycle will make better decisions, mitigate risk, and provide strategic recommendations to their organization.

In this course, Hailey Margetta provides an overview of how to calculate the cash conversion cycle, interpret its meaning, identify risks that can impact a businesses cash conversion cycle and shares the best questions to ask when completing your analysis.

Because a company’s cash conversion cycle impacts everything from meeting its financial obligations to future growth, it’s a concept all driven business professionals need to understand.

Concepts

0. Introduction

01 - Improve your business acumen with the cash conversion cycle
02 - Why the cash conversion cycle is important for business professionals
03 - Understanding business through the lens of the cash conversion cycle

1. Calculating the Cash Conversion Cycle

04 - The cash conversion cycle formula
05 - Days inventory on hand, a component of the cash conversion cycle
06 - Days sales on hand, a component of the cash conversion cycle
07 - Days payable on hand, a component of the cash conversion cycle

2. Interpreting the Cash Conversion Cycle

08 - Implications of short cash conversion cycles
09 - Implications of long cash conversion cycles
10 - How to improve the cash conversion cycle

3. Risks that Impact the Cash Conversion Cycle

11 - Supply risk impact on cash conversion cycle
12 - Production risk impact on cash conversion cycle
13 - Demand risk Impact on cash conversion cycle
14 - Collection risk impact on cash conversion cycle
15 - External risks that influence cash conversion cycle

Conclusion

16 - Your power in undersatnding the cash conversion cycle