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Oliver | MMMT Wealth's avatar

Nice article Kevin.

I’ve never heard anyone talk about the cash conversion cycle before, but it does for sure paint a great picture of the health of a business. Fluctuations in these numbers are likely always for one reason or another that investors need to know.

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Mr Schmidt's avatar

Hi Kevin,

as usual a thoughtful and interesting article.

I myself like the CCC very much as an indication of potential competitive advantages and checking its components and where they are trending over time

Note, fwiw (I am a computer scientist, no economist and have no track record to speak of) I wrote two articles on how I believe the CCC should be extended: I find it deficient in the aspect of catching float-style businesses, e.g. subscription businesses that are being paid upfront. Unfortunately I never received feedback, so maybe it is just irrelevant (but i think it shouldn't be - also prepaid expenses shouldn't be ignored imo ...after all they all relate to cash)

For anyone interested: The latest of my articles is https://compcap.substack.com/p/modifications-to-working-capital

Have a nice weekend and thanks again for another interesting article

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