#cash | Noutez

The cash conversion cycle measures an operating wait

The cash conversion cycle estimates how long money is tied up between paying suppliers and collecting from customers. If goods sit for 30 days, customers take 20 days to pay and suppliers allow 15 days, the cycle is 35 days: 30 plus 20 minus 15, using these simplified averages.

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dividends

A dividend moves value out of the company

A cash dividend distributes part of a company's resources to shareholders. If a company pays ₹5 per share, it sends out cash and retains less cash inside the business. The payment is therefore not an extra gain that can be considered independently of the value of the remaining share.

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liquidity

Liquidity is about turning value into usable cash

Liquidity describes how easily an asset can become cash without a substantial loss in price. A property may be valuable yet take months to sell. Money already available in a transaction account can be much easier to use for a bill due tomorrow, despite being a smaller asset.

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