Gauging liquidity — how quickly assets can be converted into cash — helps bankers anticipate whether a borrower will be able to make timely loan payments. To measure liquidity, bankers traditionally look to the balance sheet and compute the current or quick ratio. But there’s also another, lesser-known metric called the cash conversion cycle (CCC).
How to Measure Liquidity Using the Cash Conversion Cycle
Posted by bgoricki on Feb 12, 2017 5:18:16 PM
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Topics: Advisory, cash conversion cycle, Commercial Banking, Commercial Lenders, liquidity, Uncategorized