Directly applicable knowledge of the Cash-to-Cash Cycle

Do you know your Cash-to-Cash Cycle and can you simulate it? The Cash-to-Cash-Cycle is one of the most important KPIs in working capital management. The Cash-to-Cash Cycle measures how long on average the liquidity of a company is tied up and therefore not available for other tasks. It measures the period of time from the outflow of capital through payment of raw materials and/or merchandise to the inflow of capital with payment of the finished goods by the customer. The C2C is therefore not synchronised with the receipt and issue of the material and goes beyond material financing.

Show this video to your managers. CA Trainer Dietmar Pascher explains how sensitive working capital is in relation to liquidity and how you to use the cash-to-cash cycle driver tree for simulations. In the attached download you will also find the appropriate Excel template.

In  Stage II – Financial & Management Accounting and Stage IV -Planning & Implementation we treat and train the cash-to-cash cycle in detail on the topic of working capital management

Cash-to-Cash Cycle – Working Capital Driver