Why Is Apple's Cash Conversion Cycle Significantly Shorter Than Samsung's?

June 08, 2016   |   June 2016 Bond Updates
The cash conversion cycle looks at the amount of time a company takes to sell its inventory, collect its receivables and the time it takes to pay suppliers. The metric indicates how efficiently a company is managing its working capital and generating cash flows. Apple’s cash conversion cycle stood at -53 days for FY’15, per our estimates, implying that it practically ran its supply chain with credit extended by its vendors. In contrast, Samsung has a long CCC of close to 78 days. Below, we look at the cash conversion cycles for the two companies and the reasons for the differences.

View more at: http://www.forbes.com/sites/greatspeculations/2016/06/07/why-is-apples-cash-conversion-cycle-significantly-shorter-than-samsungs/
 
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