Money is tied up in inventory until it can be sold. As a result, cash invested in the inventory is not available for alternative uses. Maintaining a short operating cycle and cash conversion cycle are ...

Second-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here. Let’s imagine a company we’ll call Nile, Inc. Nile is a ...

An inventory conversion period is equal to the number of days between the date that materials are acquired and the date that a product or service is sold. The inventory conversion period is calculated ...

A good company must make profits its income must be higher than its costs. However, profits can be manipulated with clever accounting and may not reflect the underlying reality. Savvy investors will ...

Amazon's cash conversion cycle is negative, meaning it is generating revenue from customers before it has to pay its suppliers for inventory, among other things. A negative cash conversion cycle is ...