Discuss the purpose of the cash conversion cycle and its components.
Blythe Corporation and Jacke Corporation, two companies of roughly the same size, are both involved in the manufacture of shoe‐tracing devices.
July 22, 2019Based on your analysis above, what seems most applicable to your hypothetical study and why?
July 22, 2019Discuss the purpose of the cash conversion cycle and its components.
Question Description
Select a multinational company from the following industries:
- Retail
- Pharmaceutical
- Computer Hardware
- Manufacturing
- Automotive
Review the selected company’s most recent financial statements.
Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft® Excel®:
- Average inventory
- Inventory turnover rate
- Average account receivable
- Account receivable turnover
- Average collection cycle
Explain in 700 words the importance of the cash conversion cycle, including:
- Discuss the purpose of the cash conversion cycle and its components.
- Analyze the results obtained in the cash conversion cycle equations.
- Propose strategies to increase the cash flows of the company under study.
Format your paper consistent with APA guidelines.
