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Dictionary by pitch.dog
Cash flow & liquidity · Working

Cash conversion

Also called: profit-to-cash conversion

ELI5

The extent to which accounting profit or revenue turns into cash.

Used in conversation

“Keep cash conversion on the dashboard, but show the definition and reporting period beside it.”

Pitch context

You will see “Cash conversion” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.

Why it matters: In cash flow & liquidity, 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

When the words have to travel

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Sources & evidence · 4

Direct term-level sources and supporting source families.