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Finance Dictionary and Glossary of Investment Terms
Cash conversion cycle
Definition 1.
The length of time between a firm's purchase of inventory and the receipt of cashfrom accounts receivable.
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Definition 2.
The duration between the sale of a firm's inventory and the collection of accounts receivable for the sale of that inventory.
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Definition 3.
The length of time between the purchase of raw materials and the collection of accounts receivable generated in the sale of the final product. also called cash cycle.
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