Cash conversion cycle

Cash conversion cycle

Bachelor of Business Studies (BBS) — Second Year

Subject: Fundamentals of Financial Management (MGT 215)

Unit 9: Working Capital Management

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of cash conversion cycle.
• Apply the relevant financial model, calculation or analytical approach and explain its assumptions and decision implications.

Curriculum Scope

• Cash conversion cycle

Detailed Microsyllabus

1. Cash conversion cycle

   1. Inventory-holding and receivable-collection periods.
   2. Payable-payment period as an offset.
   3. Calculate the operating and cash conversion cycles.

2. Interpretation

   1. Sources of cash tied up in operations.
   2. Effects of policy changes on cycle length.
   3. Balance shorter cycles with service and supplier relationships.

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Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 41-43.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.