Cash Conversion Cycle

In busi­ness control­ling, cash turno­ver or cash turno­ver period refers to the length of time for which liquid funds (cash) are tied up in the company’s current assets. It is calcu­la­ted from the average storage period (stock days) plus the average coll­ec­tion period (dura­tion of debt coll­ec­tion or custo­mer target) minus the average payment target with suppli­ers (supplier target).