Definition: Cash Conversion Cycle - Examples & Advice | Bolder Money

Accelerators Accelerators

Accounts Payable Accounts Payable

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Bookkeeping Bookkeeping

Bootstrapping Bootstrapping

Break-even Point Break-even Point

Budgeting for Business Budgeting for Business

Burn Rate Burn Rate

Business Credit Business Credit

Business Credit Line Business Credit Line

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Cash Budgeting Cash Budgeting

Cash Conversion Cycle Cash Conversion Cycle

Cash Flow Forecast Cash Flow Forecast

Cash Flow Management Cash Flow Management

Cash Runway Cash Runway

Competitive Analysis Competitive Analysis

Competitor Research Competitor Research

Cost Control Cost Control

Cost Structure Cost Structure

Cost of Customer Acquisition Cost of Customer Acquisition

Cost of Goods Sold (COGS)Cost of Goods Sold (COGS)

Credit Management Credit Management

Crowdfunding Crowdfunding

Customer Lifetime Value Customer Lifetime Value

Debt Financing Debt Financing

Digital Payments Digital Payments

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Economic Value Added Economic Value Added

Entrepreneurial Risk Entrepreneurial Risk

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Expense Reimbursement Expense Reimbursement

Expense Tracking Expense Tracking

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Financial Cushion Financial Cushion

Financial Projection Financial Projection

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Fixed Cost Fixed Cost

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Gross Profit Gross Profit

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Inventory Management Inventory Management

Investment in Business Investment in Business

Invoice Management Invoice Management

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Merchant Services Merchant Services

Microloan Microloan

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Monthly Recurring Revenue Monthly Recurring Revenue

Net Operating Income Net Operating Income

Net Profit Net Profit

Online Payment Processing Online Payment Processing

Operating Cash Flow Operating Cash Flow

Operating Leverage Operating Leverage

Operating Margin Operating Margin

Operating Profit Operating Profit

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Pricing Strategy Pricing Strategy

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Profit Margin Profit Margin

Profit Margin Analysis Profit Margin Analysis

Profit Projection Profit Projection

Profit Reinvestment Profit Reinvestment

Profitability Analysis Profitability Analysis

Recurring Revenue Recurring Revenue

Resource Allocation Resource Allocation

Revenue Cycle Revenue Cycle

Revenue Diversification Revenue Diversification

Revenue Forecasting Revenue Forecasting

Revenue Growth Revenue Growth

Revenue Streams Revenue Streams

Revenue per Employee Revenue per Employee

Sales Forecasting Sales Forecasting

Sales Tax Sales Tax

Seed Funding Seed Funding

Short-term Financing Short-term Financing

Side Hustle Side Hustle

Small Business Administration (SBA)Small Business Administration (SBA)

Supply Chain Financing Supply Chain Financing

Definition

Measuring the time it takes from buying supplies to getting money from sales. A shorter cycle means money comes in faster to cover costs.

What to consider

Understand both fixed and variable costs.
Use break-even analysis to set realistic sales targets.
Adjust operational strategies to lower the break-even threshold.

Real world scenarios

A café in Denver determines the number of coffees it must sell daily to cover all fixed and variable costs.
An online retailer calculates break-even volume for new product launches.
A consultant computes the break-even point before offering a new service package.

Related terms

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