The Cash Conversion Cycle Ratio is calculated by subtracting the average payment period from the sum of the average collection period and the average inventory turnover period. It measures how efficiently a company manages its cash flow, with a shorter cycle indicating faster cash turnover and improved liquidity.
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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.
