Want to boost your business's cash flow? Let's talk about the cash conversion cycle (CCC). It's the time it takes for your company to turn inventory into cold, hard cash. You can shorten your CCC by speeding up inventory turnover, collecting payments faster, and negotiating better terms with suppliers. These moves can give your business a serious financial edge.
You've probably heard about the Cash Conversion Cycle (CCC). It's a big deal in business. But here's the million-dollar question: Is it better for the CCC to be positive or negative?
A negative cash conversion cycle is good for business because it means you're getting paid faster than you're paying out. It's like having a money-making machine that runs on its own.
The cash conversion cycle measures how long a company takes to turn its inventory into cash. It's like a race to get money back in your pocket after buying stuff to sell.
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