As it is true with other cash flow computations, the shorter the cash conversion cycle, the better the business is at selling its inventories and recovering money from these sales while paying vendors.
Show Objective Given our previous shows on Financial Reporting, Break Even Analysis, and Activity Based Costing; build a spreadsheet for managing cash flow that will identify periods when the outflow of cash exceeds its inflow to determine how much cash on hand is required to meet all of your financial obligations on time. EPISODE 61: Summary (support podcast) The cash conversion cycle measures how efficiently a company’s management is handling its working capital. It shows the length of time between an entity’s purchase of inventory/materials and the receipts of cash from its accounts receivables. More precisely, it is put in practice by the management to envisage how long a company’s cash remains tied up in its operations. Topics:
IMPORTANT SUPPORT IS NOW AVAILABLE - Wednesday at 1PM EST is our CHALLENGE Session where we will review the previous Financial Shows. It is an open forum for you to ask questions and challenge your thinking about Owning Your Numbers. Click Here to Reserve a Seat. Tags: willing in difficult times, recession proofing your business, owning your numbers, cash flow, cash flow spreadsheet, sales forecast, production forecast, csh flow forecast, IBGR, IBGR Network, William Eastman EPISODE 62: Money In - Money Out (support podcast) Let's get this puppy rolling. None of this difficult, it is really a thought process to capture how money is flowing in and flowing out. You start with Balance & Cash Flow Statements. Then add your Sales Forecast to build an accurate picture of the next 90 or 120 days. Topics: Sales Forecast
IMPORTANT SUPPORT IS NOW AVAILABLE - Wednesday at 1PM EST is our CHALLENGE Session where we will review the previous Financial Shows. It is an open forum for you to ask questions and challenge your thinking about Owning Your Numbers. Click Here to Reserve a Seat. Tags: willing in difficult times, recession proofing your business, owning your numbers, cash flow, cash flow spreadsheet, sales forecast, production forecast, csh flow forecast, IBGR, IBGR Network, William Eastman EPISODE 63: Building Your Spreadsheet (support podcast) Now that we have broken down the Balance & Cash Flow Statements, you need to create a spreadsheet where you can track the flow of dollars or pounds or euros - or any currency. It is powerful for you to do this manually to really understand how this cycle takes place to identify trouble periods. I have found this the most useful way of doing it rather than having it built for you. Topics:
IMPORTANT SUPPORT IS NOW AVAILABLE - Wednesday at 1PM EST is our CHALLENGE Session where we will review the previous Financial Shows. It is an open forum for you to ask questions and challenge your thinking about Owning Your Numbers. Click Here to Reserve a Seat. Tags: willing in difficult times, recession proofing your business, owning your numbers, cash flow, cash flow spreadsheet, sales forecast, production forecast, csh flow forecast, IBGR, IBGR Network, William Eastman EPISODE 64: Capacity, Sales, and Working Capital (support podcast) Example Spreadsheet IMPORTANT SUPPORT IS NOW AVAILABLE - Wednesday at 1PM EST is our CHALLENGE Session where we will review the previous Financial Shows. It is an open forum for you to ask questions and challenge your thinking about Owning Your Numbers. Click Here to Reserve a Seat. Tags: willing in difficult times, recession proofing your business, owning your numbers, cash flow, cash flow spreadsheet, sales forecast, production forecast, csh flow forecast, IBGR, IBGR Network, William Eastman
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