The net trade cycle is a financial metric that measures the time it takes for a company to convert its investments in inventory into cash, considering both operating and financing cycles. It is calculated by subtracting the days payable outstanding (DPO) from the sum of days inventory outstanding (DIO) and days sales outstanding (DSO). A shorter net trade cycle indicates efficient working capital management and improved cash flow.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
