Inventory Conversion Period Definition Formula Examples
What is the Inventory Conversion Period? The high conversion period determines the slow cash conversion cycle and block of money in inventory. In contrast, a decreased conversion period reduces cash conversion cycles and unnecessary money blockage. It takes into account the average amount invested in the stock. Inventory Conversion Period Formula The number of days or months the inventory converts into sales determines the cash conversion cycleDetermine The Cash Conversion CycleThe Cash Conversion Cycle (CCC) is a ratio analysis measure to evaluate the number of days or time a company converts its inventory and other inputs into cash....