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Dictionary by pitch.dog
Financial ratios & operating efficiency · Working

Cash conversion ratio

Also called: cash conversion

ELI5

Operating cash flow divided by a profit measure under a stated formula.

Used in conversation

“Compare cash conversion ratio with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Cash conversion ratio” in financial models, budgets, board packs and investor materials when the discussion reaches financial ratios & operating efficiency.

Why it matters: In financial ratios & operating efficiency, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

  • Cash conversionThe search label “Cash conversion” can route to both entries.
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Sources & evidence · 5

Direct term-level sources and supporting source families.