This was really helpful, especially the timeline explanation at the end. Thank you.
@Edspira
2 жыл бұрын
Glad it was helpful!
@davidloo9497
Жыл бұрын
Finally - someone explains this in a coherent way with an excellent example (timeline) AND tells you the WHY behind the importance of CCC. Thank you!
@Edspira
Жыл бұрын
I put a lot of time into making that video, so your comment made my day. Thank you!
@AidenPrioste
Жыл бұрын
The timeline was incredibly helpful in understanding the concept, thank you!
@radleyboi
Жыл бұрын
Simple and quite straightforward
@Edspira
Жыл бұрын
Thank you!
@mikeungad0508
Жыл бұрын
simply put. explained very well in a very short clip. Keep doing moe videos Edspira..
@MyFinancialFocus
2 жыл бұрын
This is name of the game when it comes to cash flow. Maintaining liquidation is key!
@keshavkapoor4594
3 жыл бұрын
Great video, especially the time line explanation!!
@Edspira
2 жыл бұрын
Glad you liked it!
@rubjay6390
Жыл бұрын
really helpful sir, watching multiple of your vids to guide me through financial accounting
@azlifestyle5316
3 жыл бұрын
Perfect explanation, dude. PS love how enunciate your words, entertaining and educational.
@Edspira
2 жыл бұрын
I appreciate that!
@mayankmittal8107
3 жыл бұрын
so well explained, thanks very much for the teaching.
@Edspira
3 жыл бұрын
Glad it was helpful!
@abdulrehmankhan9584
Жыл бұрын
Excellent way to explain. Thank you
@usmanashraf9079
2 жыл бұрын
love this channel for always having such wonderful conceptual explanations....
@Edspira
2 жыл бұрын
Glad you enjoy it!
@rizalitocacapit7621
4 жыл бұрын
very simple and clear presentation
@Edspira
2 жыл бұрын
Thank you so much 🙂
@erinwhite9120
4 жыл бұрын
I just need to say this is so very helpful- thank you!!
@Edspira
2 жыл бұрын
You are so welcome!
@amberliwentee402
Жыл бұрын
Can't agree more, the timeline explanation is really helpful, it explain why DSO + DIO - DPO... thank you! :)
@xindy7126
6 жыл бұрын
Thank you for all you do 😁👍🏼
@yinyin7614
3 жыл бұрын
Excellent video.
@Edspira
3 жыл бұрын
Glad you liked it!
@davidizaguirre3421
4 жыл бұрын
Thanks man, for the clear explanation!!
@Edspira
2 жыл бұрын
No problem!
@bmanq2234
3 жыл бұрын
Clear explanation as usual!
@Edspira
3 жыл бұрын
Glad it was helpful!
@juancardec3849
2 жыл бұрын
Thank you for the informative video
@oo-nj7kg
3 жыл бұрын
thank you very much!
@Edspira
3 жыл бұрын
You're welcome!
@bastiensuinot1378
4 жыл бұрын
very clear explainations thanks dude
@rishiupadhya
4 жыл бұрын
Very nicely explained
@Edspira
4 жыл бұрын
Thank you so much 🙂
@nickfleming3719
4 жыл бұрын
So what you're saying is that you can actually have a negative cash conversion cycle, it just means you can scale. I was thinking about that in terms of the definition that's given for the cash conversion cycle and it didn't make sense. "it takes negative days to generate cash from working capital investments?"
@ofir-bar-softr
3 жыл бұрын
Hey Nick, you are right. It is possible to have a negative cash conversion cycle. Many tech companies who have a SaaS product do just that. Think about it for a moment: If companies pay and then get paid, their CCC is positive. If they get paid before, their CCC is negative. So how do companies get to negative CCC? If we take the tech company example, their days inventory is zero, since they hold software and charge for it immediately. Their collection time is negative, since they charge in advance. If you add that all up, you can get a negative CCC. If you have a negative CCC, you dont need external financing to grow. However you dont have to be a tech company. For example, Amazon squeezes their payable do much, that even though they have a collection and inventory period, the payables far outweight the other two mentioned, creating a negative CCC, making amazon to not require external financing.
@enriquemauriciocuellarlope580
4 жыл бұрын
Very well explained! Im looking for a way to incorporate changes in unearned revenue accounts into the cash convertion cycle to reduce it. how could I do that?
@moazelsawaf2000
3 жыл бұрын
Thank you so much ❤❤
@Edspira
2 жыл бұрын
You're welcome 😊
@wellingtonmoreira115
4 жыл бұрын
Thanks for share it
@nalcow
4 жыл бұрын
Good info
@supercupcake119
5 жыл бұрын
Would this be a positive or negative conversation come and why?
@dandan8370
2 жыл бұрын
So how is it not collecting its cash in 36 days because thats its average for when its recieves its AR?
@Edspira
2 жыл бұрын
The company needs to sell the inventory (which takes time) and then collect the receivable (which takes time). Thus, the time to receive the cash is the sum of the time to sell the inventory plus the time to collect the receivable
@sihatafnan5450
Жыл бұрын
background color choice was pretty poor.It's tough to understand the texts
@adityajoshi3888
5 жыл бұрын
What if the answere comes in negative for eg 14+49-73 = -10
@roshanghadigaonkar8267
5 жыл бұрын
Then its a hell lot better..!!
@keshavkapoor4594
3 жыл бұрын
Then it means you got cash 10 days before when you’re due to pay your suppliers.
@tomarjoseph2348
Жыл бұрын
How did you get 19
@Stsebastian8900
5 жыл бұрын
i was not given the days, so how do i work it out? i was only given balance sheet and sales account
@Dean444ful
5 жыл бұрын
Very late reply but in case anyone else is wondering you take accounts receivable and divide it by sales and then multiply it by the number of days in the year (365). Then you take inventory and payables and divide them both by cost of sales and multiply it by 365. That gives you the days and then just do the same thing he did in the video.
@Stsebastian8900
5 жыл бұрын
@@Dean444ful Yer very late, to late. Good for me i found out some where else.
@TheAnthoox
5 жыл бұрын
@@Stsebastian8900 Lol, be grateful a random person actually took the time to tell you this. A simple Google search would've given you the answer as well.
@Stsebastian8900
5 жыл бұрын
@@TheAnthoox no and no.
@motas92
5 жыл бұрын
@@Stsebastian8900 hope you keep failing for being such an ass!
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