Cash Conversion Cycle Analysis

1. The purpose of this assignment is to help students gain a better understanding of calculations of cash flow and strategies to increase it.

1. selecta multinational company from the following industries:

• Retail
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive

1. take a look at the selected company's most recent financial statements.

1. Calculatethe following cash conversion cycle ratios based on the financial statements usingMicrosoft Excel:

• Average inventory
• Inventory turnover rate
• Average account receivable
• Account receivable turnover
• Average collection cycle

2. talk about the importance of the cash conversion cycle, including:

• Discuss the purpose of the cash conversion cycle and its components.
• Analyze the results obtained in the cash conversion cycle equations.
• Propose strategies to increase the cash flows of the company under study.

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