The Cash Conversion Cycle (CCC): The King of the Cash Flow Statement?

Learn more: breakingintowallstreet.com/co...
In this tutorial, you'll learn about the Cash Conversion Cycle in financial statement analysis and understand when it's useful vs. not so useful, and what it means for valuations.
Files & Resources:
breakingintowallstreet.com/kb...
Table of Contents:
0:00 Introduction
3:49 Part 1: CCC Calculations for Target and Costco
6:50 Part 2: Valuation Impact
8:30 Part 3: When is the Cash Conversion Cycle Useful?
9:55 Recap and Summary

[@financialmodeling]

Files & Resources: breakingintowallstreet.com/kb/financial-statement-analysis/cash-conversion-cycle/ Table of Contents: 0:00 Introduction 3:49 Part 1: CCC Calculations for Target and Costco 6:50 Part 2: Valuation Impact 8:30 Part 3: When is the Cash Conversion Cycle Useful? 9:55 Recap and Summary

[@dylank1481]

Would be interesting to see a similar video for software businesses. How payment terms (multi-year upfront, annual upfront, or monthly) affects CCC. No DIO because no inventory.

[@financialmodeling]

Thanks. We do cover some of these points in the video on SaaS accounting from a few months ago. For software companies, most people would probably just look at the Change in Deferred Revenue or Change in DR - Change in AR over something like the CCC due to the lack of Inventory.

[@ksenianesterenko4]

Why are we getting avarage in 2 years and after calculating only 1?

[@kevinkinsella7815]

Thank you

[@financialmodeling]

Thanks for watching!

[@yo-rourke3718]

😱👏