Aims of CCC
Our aim of studying cash conversion cycle and its calculation is to change the policies relating to credit purchase and credit sales. We can change our standard of payment of credit purchase or getting cash from our debtors on the basis of reports of cash conversion cycle. If it tells good cash liquidity position, we can maintain our past credit policies. Its aim is also to study cash flow of business. Cash flow statement and cash conversion cycle study will be helpful for cash flow analysis.
Read more about this topic: Cash Conversion Cycle
Famous quotes containing the words aims of and/or aims:
“Man lives consciously for himself, but is an unconscious instrument in the attainment of the historic, universal, aims of humanity.”
—Leo Tolstoy (1829–1910)
“Since he aims at great souls, he cannot miss. But if someone should slander me in this way, no one would believe him. For envy goes against the powerful. Yet slight men, apart from the great, are but a weak bulwark.”
—Sophocles (497–406/5 B.C.)