The cash conversion cycle (CCC, or Operating Cycle) is the length of time between a firm's

purchase of inventory and the receipt of cash from accounts receivable. It is the time required for a
business to turn purchases into cash receipts from customers. CCC represents the number of days
a firm's cash remains tied up within the operations of the business. A cash flow analysis using CCC
also reveals in, an overall manner, how efficiently the company is managing its working capital.
The cash conversion cycle is also referred to as the cash cycle, asset conversion cycle or net
operating cycle. Operating cycle is the number of days a company takes in realizing its inventories in
cash. It equals the time taken in selling inventories plus the time taken in recovering cash from trade
receivables. It is called operating cycle because this process of producing/purchasing inventories,
selling them, recovering cash from customers, using that cash to purchase/produce inventories and so
on is repeated as long as the company is in operations.
The operating cycle for the company i.e. Bilal Fibres shows that the no of days the company is taking
to realize its inventory into cash is fluctuating in the five years from 2011 to 2015. The average
collection period shows the average time in which company is collecting cash which is increasing from
2011 to 2015 whereas the average payment period shows the amount of time the company is taking
to pay cash which is fluctuating and is highest in 2015. The cash conversion cycle shows the time
between when the company is purchasing the inventory and the receipts of cash from accounts
receivable. The CCC for the year 2013 is highest which shows that this year is taking more time
between the receipts of cash and purchase of inventory as compared to the other years. After 2013
2012, 2014, 2011 and 2015 are the years who have highest cash cycle