The cash conversion cycle (CCC) measures how many days it takes a company

300+ Discussion Post is requested for the information below.

The cash conversion cycle (CCC) measures how many days it takes a company to receive cash from a customer from its initial cash outlay for inventory. For example, a typical retailer buys inventory on credit from its vendors. When the inventory is purchased, a payable is established, but cash isn’t actually paid for some time.  The CCC is most effective with retail-type companies which have inventories.  Consulting, software, insurance companies are example where the CCC isn’t useful. The cash cycle has three distinct parts. The first part represents the current inventory level, the second part represents current sales and the amount of time it takes to collect cash from sales on account and the third part represents current outstanding payables.  The lower the cash cycle the better, so a negative cash cycle is very desirable.

One of the ways a company can reduce the time to collect cash from sales on account is through factoring.  Point your browser to,   https://www.rtsfinancial.com/guides/what-factoring  Your assignment is to explore this Web Site and to answer the question: How does the process of factoring work?

Thanks for installing the Bottom of every post plugin by Corey Salzano. Contact me if you need custom WordPress plugins or website design.

Order

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp
%d bloggers like this: