Cash conversion cycle (cash-to-cash cycle time)

Unless otherwise defined, the number of (business) days in which a company is able to settle its trade payables with income from the sale of goods or services (cash flow from operating activities; revenues) (in short: the length of time between the maturity date of payables and the collection of receivables). Key figure frequently used by banks to assess the creditworthiness of a customer in the course of rating. – See balance sheet, facts and circumstances.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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