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Cash Conversion Cycle Ratio

Purpose -

Measures the time taken to convert investments in inventory into cash flows.

Operational Definition -

Days Inventory Outstanding + Days Sales Outstanding – Days Payable Outstanding

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Quarterly

External References -

https://www.machinemetrics.com/blog/manufacturing-kpis

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