Analyzing A Company's Liquidity Using The Cash Conversion Cycle Webcast | 4203795A

Course Details


Thursday, June 18, 2020

8:00am – 10:00am
(Registration: 7:30am)

Field of Study


Course Number


CPE Credit

2.0 hours CPE credit

Level of Knowledge



CalCPA Education Foundation




What is the Cash Conversion Cycle? How do you calculate it? What does it really mean in regards to a company's liquidity position?
Learn how the CPA should calculate and interpret the Cash Conversion Cycle formula to see its direct impact on the company's liquidity. Included in the formula will be an assessment of types of inventory, collecting account receivables efficiently, and paying the account payables in a "judicious" manner.
Additionally, cover inventory accounting "costing methods," financing inventory, and controlling inventory costs. The effective collection of receivables will also be reviewed including negotiating "reasonable" terms. Furthermore, the timing of paying the payables will be explored including the impact of taking "discounts." The related use of the Borrowing Base Certificate (BBC) will also be discussed.
Conclude with a review of related "company" and "business owner" liquidity issues and models.
The concepts of the Cash Conversion Cycle will be illustrated through a case study.


What is the Cash Conversion Cycle? How is it calculated? How does it directly impact a company's liquidity?
Inventory issues including costing methods, financing, and cost containment
Receivables and "reasonable" terms
Payables and the benefit of "discounts"
Use of the Borrowing Base Certificate (BBC)
Related "company" and "business owner" liquidity models
The Cash Conversion Cycle applied through case study


Determine the Cash Conversion Cycle and its impact on the company's liquidity
Identify inventory issues-cost methods, financing, and cost control
Explore receivable collection issues
Analyze payable management and discounts
Utilizing the Borrowing Base Certificate (BBC)
Recognize related "company" and "business owner" liquidity issues
Apply the Cash Conversion Cycle concepts through case study

Designed For

CPAs, CFO/controllers, financial managers, auditors, financial analysts and practitioners.

Course Pricing

Member Fee

Applicable if you are a HSCPA member in good standing.

Non-Member Fee

Applicable if you are not a HSCPA member.

Your Price $101.00

CPE Choice

Learn more about CPE Choice.
This course does not qualify for CPE Choice.

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