cash conversion

cash conversion
cash conversion ˈcash conˌversion noun [uncountable]
MANUFACTURING the process in which a company uses materials that it buys in order to make money from the sale of finished goods:

• The cash conversion cycle is the number of days it takes a company to purchase raw materials and convert them to a finished product.

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cash conversion UK US noun [U] ACCOUNTING
the process by which a company changes the value of materials it has bought into money received by selling the finished products: »

We have achieved strong revenue growth, higher margins and improved cash conversion.

»

City analysts had expressed concerns over the company's rate of cash conversion.

Compare CASH TURNOVER(Cf. ↑cash turnover)

Financial and business terms. 2012.

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Look at other dictionaries:

  • Cash conversion cycle — or CCC is the time duration in which a firm is able to convert its resources into cash. It is actually the total time period required to first convert resources into inventories, then inventories into finished goods, then goods into sales, and… …   Wikipedia

  • cash conversion period — UK US noun [C] (also cash cycle) ACCOUNTING ► the period of time it takes for a company to change the value of materials it has bought into money received by selling the finished products: »The company has a cash conversion period of 81 days …   Financial and business terms

  • Cash Conversion Cycle — Der Geldumschlag (auch Geldumschlagsdauer, englisch: cash conversion cycle, asset conversion cycle, net operating cycle, working capital cycle oder kurz cash cycle) bezeichnet im betriebswirtschaftlichen Controlling die Dauer der Bindung liquider …   Deutsch Wikipedia

  • Cash Conversion Cycle - CCC — A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of time each net input dollar is tied up in the production and… …   Investment dictionary

  • Cash conversion cycle — The length of time between a firm s purchase of inventory and the receipt of cash from accounts receivable. The New York Times Financial Glossary …   Financial and business terms

  • cash conversion cycle — The length of time between a firm s purchase of inventory and the receipt of cash from accounts receivable. Bloomberg Financial Dictionary …   Financial and business terms

  • conversion — The sale of a cash position and investment of part of the proceeds in the margin for a long futures position. The remaining money is placed in an interest bearing instrument. This practice allows the investor/dealer to receive high rates of… …   Financial and business terms

  • Cash cycle — In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period. The New York Times Financial Glossary * * * cash cycle UK …   Financial and business terms

  • cash cycle — In general, the time between cash disbursement and cash collection. In net working capital management, it can be thought of as the operating cycle less the accounts payable payment period. Bloomberg Financial Dictionary * * * cash cycle UK US… …   Financial and business terms

  • Cash Discount — An incentive that a seller offers to a buyer in return for paying a bill owed before the scheduled due date. The seller will usually reduce the amount owed by the buyer by a small percentage or a set dollar amount. If used properly, cash… …   Investment dictionary

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