Cash-to-cash cycle
From Supply Chain Management Encyclopedia
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| - | The cash-to-cash cycle (C2C) represents the amount of time, in days, between the firm paying cash for input materials (e.g., raw materials for a manufacturer; finished resale product for a retailer) and receiving cash from customers. | + | The cash-to-cash cycle (C2C) represents the amount of time, in days, between the firm paying cash for input materials (e.g., raw materials for a manufacturer; finished resale product for a retailer) and receiving cash from customers.<ref>http://www.vitalentusa.com/learn/cash_to_cash.php<ref> As seen in the formula, the C2C cycle is comprised of three elements: cash used in inventory and in accounts receivable and cash that is free due to nonpayment of accounts payable. Specifically: |
| - | As seen in the formula, the C2C cycle is comprised of three elements: cash used in inventory and in accounts receivable and cash that is free due to nonpayment of accounts payable. Specifically: | + | |
Revision as of 09:35, 9 June 2011
The cash-to-cash cycle (C2C) represents the amount of time, in days, between the firm paying cash for input materials (e.g., raw materials for a manufacturer; finished resale product for a retailer) and receiving cash from customers.Cite error: Closing </ref> missing for <ref> tag
