Mah Seng Company Berhad had total earnings last year of $5 million but expects total earnings to drop to $4,750,000 this year because of a slowdown in the consumer sector. There are currently 1 million shares of common stock outstanding. The company has $4 million worth of investments to undertake this year. The company finances 40% of its investments with debt and 60%

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.