3 A B C D E F G H I J K L M N O P Q R S T U V W Y

Cash-to-cash cycle time

Cash-to-cash cycle time measures the time from when a manufacturer pays its suppliers for material to the time it is paid by customers for the products that used those supplies or materials. This cash flow measure can range from many months in complex long lead-time industries to negative numbers for companies such as Dell Computers, which collects money from its customers before it pays suppliers for the parts in those products.