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Discuss the benefits the company stands to gain

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Reference no: EM132635038

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?

Reference no: EM132635038

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