Archive for the ‘Cash conversion cycle’ Category
Topics Covered In This Heading:Cash Conversion Cycle(CCC)/Daily Working Capital(DWC)Cash Operating Cycle
This heading covers the following topics:
What is Cash Conversion Cycle
Cash Conversion Cycle- Methodology and Computation
Order to Cash Cycle-Definition, Overview and Benefits and Kpa/Kpi
Cash Conversion Cycle- An Ilustration besides using the exhaustion method.
Using Days Inventory Outstanding(DIO) for better stock management.
Cash Operating Cycle/Cash Conversion Cycle/Daily Working capitalAnd The Steps To Improve Cash Flows
March 10, 2008
Tags: Cash Conversion Cycle, Cash operating cycle, Daily Working Cycle Posted in: Cash conversion cycle 
7 Comments
Cash Flow Indicates Company’s Health
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In the Edge, Malaysia (3/8/06) there was a very interestingly article pertaining to the importance of cash flow. This is especially useful when it relates to your own personal investment. The keynotes: [...]
August 5, 2006
Tags: Cash flows Posted in: Cash conversion cycle, Financial Strategy, Personal Finance No Comments
What is Cash Operating Cycle And Ways To Improve Cash Flows
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Cash operating cycle is a close loop cycle which encompasses the five stages of normal operating business cycle:
(1) The receipt of raw materials from suppliers;
(2) Conversion of the raw materials into work in progress and finally to finished products;
(3) Delivery of goods [...]
July 5, 2006
Tags: Cash flows, Cash operating cycle, What is Posted in: Cash conversion cycle, TREASURY articles 2 Comments
How To Use Days Inventory Outstanding (DIO) for Better Stock Management
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In my earlier article on working capital management, we noted that days inventory outstanding forms one part of the component of the cash conversion cycle.
This article attempts to explore the further detailed use of DIO in stock management:
If we look at [...]
May 13, 2006
Tags: Days Inventory Outstanding, DIO, How to, stock management Posted in: Cash conversion cycle, Financial Strategy 3 Comments
How To Compute Cash Conversion Cycle & Example
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There are few ways of computing the components of the Cash Conversion Cycle.
One way is to use the exhaustion method. (Refer to my earlier article on this). This is mainly for internal use for management reporting.
There is another common way which is [...]
April 14, 2006
Tags: How to Posted in: Cash conversion cycle One Comment
Order-To-Cash Cycle: Definition,An Overview, Benefits, KPA and KPI
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The Order to Cash Cycle is a tedious process, which might take about 30% of the total finance costs. If this process is overlooked & becomes inefficient, we can see the following symptoms:
high order-taking time,
high order-fulfillment error rates,
high DSO rates,
high costs of [...]
March 22, 2006
Tags: Cash Conversion Cycle, Order to cash cycle Posted in: CREDIT MANAGEMENT/CONTROL, Cash conversion cycle, Finance Role/KPA/KPI, Financial Operations One Comment
Cash Conversion Cycle: Methodology and Computation
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In the earlier article on the CCC, we learned about what is CCC, its components and the definition of each component. We shall now turn to how do we compute the various components.
To recap:
Days Sales Outstanding or DSO represents number of days, [...]
March 18, 2006
Posted in: Cash conversion cycle One Comment
