Learn how the cash conversion cycle identifies efficient companies and improves your financial analysis skills.

A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Any small business person is acutely aware of the importance of liquidity -- having enough cash available to pay the bills. That's why business owners and managers monitor the cash conversion cycle, ...