The cash conversion cycle (CCC) is a key measurement of small business liquidity. The cash conversion cycle is the number of days between paying for raw materials or goods to be resold and receiving ...

The cash conversion cycle is a key metric for startups, but one that often isn’t talked about until a business hires a CFO. Once a business established product market fit, the cash conversion cycle is ...

A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy. FASB describes liquidity as reflecting “an asset’s or liability’s nearness ...

Buy now, pay later. Delayed billing, often called deferred billing, allows customers to pay for purchases some time after actually acquiring them. While this might be an incentive and result in more ...

Second-year student Rohan Rajiv is blogging once a week about important lessons he is learning at Kellogg. Read more of his posts here. Let’s imagine a company we’ll call Nile, Inc. Nile is a ...

A company that does a poor job of bringing in cash, even if it's selling lots of stuff, should be avoided. Although it would take some grade-A imbecility to get there, it's entirely possible under the ...