An increase in sales sounds great! Right? But have you ever heard about the colloquialism of growing out of business? Growth requires cash flow, but sometimes, quick growth doesn’t allow you to keep up. If a company is run by leaders with sales backgrounds, they will be more focused on the growth than supporting that
Growth is great! Whether it is expanding into your third country or tapping into a new market, it’s an exhilarating process (especially for the entrepreneur). But it can also result in a crisis… You can’t fulfill orders; processes are being thrown out the door to just get it done; inventory isn’t leaving the warehouse. Growth
How do you focus on improving profitability instead of just boosting sales? 2016 wasn’t the best year for some of us, but the new year provides a perfect opportunity to reassess goals. An entrepreneur’s natural tendency is to increase sales in order to balance out last year’s financials. But what many entrepreneurs fail to consider is
What is the impact of reducing your cash conversion cycle? Is it worth the effort? In order to quantify the benefit of reducing your cash conversion cycle, it’s important to understand exactly what it is. Definition of Cash Conversion Cycle Cash Conversion Cycle is a metric that expresses the length of time, in days, that it
Operating Cycle Definition The Operating cycle definition establishes how many days it takes to turn purchases of inventory into cash receipts from its eventual sale. It is also known as cash operating cycle, cash conversion cycle, or asset conversion cycle. Operating cycle has three components of payable turnover days, Inventory Turnover days and Accounts Receivable
See Also: Operating Cycle Analysis Operating Cycle Definition The Operating cycle definition establishes how many days it takes for a company to turn purchases of inventory into cash receipts from its eventual sale. It is also known as cash operating cycle or cash conversion cycle or asset conversion cycle. Operating cycle has three components of
See Also: Days Sales Outstanding (DSO) Days Payables Outstanding (DPO) Daily Cash Flow Forecast 13 Week Cash Flow Report How to Create Dynamic Cash Flow Projections Days Inventory Outstanding (DIO) Cash Cycle Definition The cash cycle definition is the time it takes a company to turn raw materials into cash. It is also a common
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