Benefits of Cash to cash analysis

Question

Benefits of Cash to cash analysis: The benefits of Cash to cash analysis are as following:

1. Helps in better cash management situation thus, increasing liquidity.

2. The cash available for operations encompass a multiplier effect based on cash turnover. Cash to cash too influences the maximum attainable gain for a firm

3. Provides numerous financial benefits:

a. A one-time raise in cash

• From conversion of inventories or receivables into the cash,
• Delay payments of accounts payable.

b. Reducing expenses such as the weighted-average cost of capital (WACC) and inventory carrying costs (ICC).