FIN 575 Wk 3 Discussion – Cash Conversion Cycle

Post a total of 3 substantive responses over 2 separate days for full participation. This includes your initial post and 2 replies to other students.

Due Thursday

Respond to the following in a minimum of 175 words:

The cash conversion cycle (CCC) is a metric that illustrates the amount of time it takes a firm to convert investments within their inventory into cash. The cash conversion cycle formula calculates the amount of time, in days, it takes for a company to turn its resource inputs into cash.

The cash conversion cycle formula is: CCC = DIO + DSO – DPO

Discuss the benefits the company stands to gain by accurately determining the cash conversion cycle (CCC).

Discuss how an increase in the DPO will impact the cash conversion cycle?

Due Monday

Reply to at least 2 of your classmates. Be constructive and professional in your responses.