This tool will give you number of days in which company’s inventory and outstanding amounts are converted in cash at hand. This is a numerical value drawn through a formula. You will need to input data of inventory value, outstanding payments etc and a value will be generated. MSMEs / SMEs can compare this number on a month-on-month basis and monitor the health of their business. This is an important indicator to track and monitor. It denotes the health of your business.
Minimize your risks. Do a regular HEALTH-CHECK UP of your business. Track important indicators. Use the moneycontrol CASH CONVERSION CYCLE tool.
Your Cash Conversion Cycle is: 4 days