Money Minting stocks refers to the companies which are having a good cash conversion cycle (CCC) with the best cash management. CCC is a great tool which measures the total number of days cash is engrossed in working capital. It helps significantly in analyzing the competence of an organization in creating sales through cash management. This metric takes into account the time needed to sell its inventory, the time required to collect receivables, and the time the company is allowed to pay its bills without incurring any penalties. Investors who compare close competitors look not only for the lower number of CCC but other metrics such as return on equity, quick ratio and other fundamental metrics.
Other articles you may like
Post Views:
94