
Cash Conversion Cycle – Play Around Account Receivable & Account Payable for Marketing Strategies
Cash flow is the king and any business pays most attention to the ratio between cash out-flow and cash in-flow, to maintain investors’ confidences and company profitability.
There are quite a lot of components affecting the cash conversion cycle, such as cash and cash equivalent, account receivables, inventory, capital expenditure, P&L, cost of debts and debts, etc. For marketers, account receivable and account payable must be one of the components we are able to leverage to design marketing strategies and implement for diverse business goals.