AAA Auto - Cash Conversion Cycle

Automotive | February 10, 2014
Excel Sheet

In 2012, AAA Auto sold over 50,000 cars through more than 30 car centres in the Czech Republic, Slovakia and Russia. The company owns all cars it sells (appr. 8,300 in stock) and it takes the Company roughly 2 months to sell its car on average when offered (or to get the cash from the sale to be precise). While client gets its money in less than 2 weeks when selling his/her car through the Company, the average cash conversion cycle at AAA Auto took 55 days in 2012, twice as many as in 2008.