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

- Canonical URL: https://www.gerhardmerk.de/cash-conversion-cycle-cash-to-cash-cycle-time
- Post ID: 588777
- Modified: 2023-07-25T21:00:40+00:00
- Language: en

## Definition

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. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1