Financial Activity Ratios and Cash Conversion Cycle

Efficient working capital management is fundamental to assessing a company's liquidity, profitability, and operational health. This text-based course provides a clear, practical guide to calculating and evaluating essential activity ratios and understanding the Cash Conversion Cycle. What you'll learn: - Understand foundational accounting definitions and operational efficiency concepts - Calculate inventory turnover and days sales of inventory to evaluate stock management - Analyze receivables turnover and days sales outstanding to assess collection speed - Compute payables turnover and days payable outstanding to evaluate supplier payment cycles - Measure the operating cycle and full cash conversion cycle to gauge liquidity - Apply activity ratio analysis to compare performance across contemporary business models The course begins with fundamental financial terminology and standard statement structures before progressing step-by-step through turnover formulas and interpretation methods. It is tailored for beginners, aspiring analysts, and business owners, requiring no prior background in advanced corporate finance. Start reading today to build practical financial analysis skills.