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Cash conversion cycle is the number of days it takes a company to convert its investment in inventory to cash. In short, it is a combination of following ratios:
Formula for calculation is ITO+RTO-PTO. This should always be used in conjuction with in dept analysis of all the ratios involved as there is a possibility that a conversion cycle can give a distorted view due to extra ordinary fluctuation in any of the ratios.
Hope this answers your query.
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟