Working capital concept
What Is The Cash Conversion Cycle?
The cash conversion cycle measures how long cash is tied up between paying suppliers, holding inventory, and collecting from customers. It connects receivables, inventory, and payables into one timing view.
Why It Matters
A longer cycle can create liquidity pressure even when sales are growing. Inventory delays, slow collections, and supplier timing can all turn revenue into trapped cash.
How THEKNOWING.SPACE Uses It
Working Capital Visibility uses this concept to observe AR slippage, inventory pressure, AP timing, and cash visibility gaps in operational finance data.