Cash Conversion Cycle

A measure of how long it takes a company to convert its investments in inventory and other resources into cash from sales. A negative cash conversion cycle — where suppliers are paid after customers pay — is a powerful self-financing mechanism. Gymshark is the canonical example: despite rapid bootstrapped eCommerce growth, it maintained a £53M+ cash pile by collecting from customers before paying suppliers. Referenced in Last Week @theSamParr Shared Gymshark’s… (tweet).

Where this appears

• Last Week @theSamParr Shared Gymshark’s… (tweet)
• Gymshark