Describe results obtained in cash conversion cycle equations

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Reference no: EM131698734

Assignment

Purpose of Assignment

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

Assignment Steps

Select a multinational company from the following industries:

• Retail
• Pharmaceutical
• Computer Hardware
• Manufacturing
• Automotive

Review the selected company's most recent financial statements.

Calculate the following cash conversion cycle ratios based on the financial statements using Microsoft' Exceft:

Average inventory

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

Explain in 700 words 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.

Format your paper consistent with APA guidelines.

Reference no: EM131698734

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