The Cash Conversion Cycle


Post-Crisis Cash Conversion

Andrew Deichler 29 July


Much has been written about how treasury's role has grown since the 2008-09 financial crisis, and with that growth has come greater visibility - and scrutiny. In particular, the cash conversion cycle (CCC), which is used to evaluate a company's ability to convert current resources into actual cash, is under a microscope. In this week's focus, we look at how the CCC has changed over the past five years and whether the cash management quality of corporates has improved in the challenging post-crisis business environment. Gil Gadot of Fundtech leads off this week's focus with a look at liquidity management. Enhancing the availability of liquidity can help improve the availability of cash across the business; therefore, banks need to provide their corporate clients with superior solutions. Also in this focus, Greg Person of Kyriba looks at how treasurers can reduce the cash conversion cycle through effectively managing working capital, Devashis Das of RBS offers some tips on how companies can convert assets into cash, and Stanley Tan of DBS Bank looks at how CFOs and treasurers can cut down on CCC time.

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