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
See Also: Operating Cycle Definition days inventory outstanding Cash Cycle day sales outstanding days payable outstanding Financial Ratios Operating Cycle Formula Complete operating cycle analysis calculations simply with the following formula: Operating cycle = DIO + DSO – DPO Where DIO represents days inventory outstanding DSO represents day sales outstanding DPO represents days payable outstanding
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