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Cash Conversion Cycle
The length of time between the firm’s actual cash expenditures on productive resources (materials and labour) and its own cash receipts from the sale of products (i.e., the length of time between paying for labour and materials and collecting on receivables). Thus, the cash conversion cycle equals the length of time the firm has funds tied up in current assets.
Accounts Payable
Accounts Payable is the amount of money owed by a company to its creditors for goods and services purchased on credit.
Financial Cost
Expenses associated with borrowing funds or purchasing on credit, including interest expenses, fees, and other charges.
Balance
This term refers to the total amount of money in a financial account, the difference between credits and debits in an account, or the equilibrium between opposing forces or actions.
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