Current Cash Conversion Cycle (Resource invested)
Implication of Financial Statement
From the financial statement, reducing the AAI (Average Age Inventory) or ACP (Average Collection Period) and increase the APP (Average Payment Period) resulted to reduce the CCC (Cash Conversion Cycle).
For Suchee Operation, our company is in a good condition and can operate well due to the AAI, ACP and APP which is not too high and low. Also could say that Suchee obtain high income although at the beginning to operate need to use own assets. But however, to improve Suchee performance and also company income, have decided to improve the OC (Operating cycle) which later lead to the efficiency in Suchee operating management and improve Suchee Operation cash flow that influenced the CCC (Cash Conversion Cycle) which is shorter is better.
