Webcast: Analyzing A Company's Liquidity Using The Cash Conversion C

What is the Cash Conversion Cycle? How do you calculate it? What does it really mean in regards to a company’s liquidity position?

Learn how the CPA should calculate and interpret the Cash Conversion Cycle formula to see its direct impact on the company’s liquidity. Included in the formula will be an assessment of acquiring inventory, collecting account receivables efficiently, and paying the account payables in a “judicious” manner.

Additionally, cover inventory accounting “costing methods,” financing inventory, and controlling inventory costs. The effective collection of receivables will also be reviewed including negotiating “reasonable” terms. Furthermore, the timing of paying the payables will be explored including the impact of taking “discounts.”

Conclude with a review of related "company" and "business owner" liquidity issues and models. 

The concepts of the Cash Conversion Cycle will be illustrated through a case study.