Calculating the cash conversion Essay Example | Topics and Well Written Essays - 250 words

Calculating the cash conversion - Essay Example This is why a shorter conversion cycle is better. From the excerpt, it is evident that money is held in the stock up to the time when it is sold. It infers that invested cash, or money that was used to purchase this stock is not available, and cannot be used for any other purpose (Brigham & Houston, 2012). Therefore, business must maintain short cash conversion cycle in order to reduce costs associated with inventory storage and depreciation and maintain business liquidity at a higher point. In a nut shell, the cash conversion cycle measure the time in days that the company takes to convert its input resources into cash flows. That is, it reflects the period of time in days that the company takes to sell its stock, collect all cash receivables, and settle its bills (Whittington, 2012). It is conventionally agreed that a company that takes the shortest time is at its bets operations. This is because the cash becomes free as the cash conversion cycle shortens, and the company can invest it, use it for other activities such as purchasing new equipment, infrastructure to boost the returns. Cash conversion cycle is also significant in assessing the efficiency of the management and competitor comparison (Graham & Smart,

Operations Management - Cruise Inc Case Study Example | Topics and Well Written Essays - 1250 words - 1

Operations Management - Cruise Inc - Case Study Example Every section of the cruise is productive for the firm either through the direct or indirect way of generating revenue. This productivity of the firm can be measured from the earning from each activity carried out on the cruise by analyzing the travel partner performances, analyzing the cost of sale for the firm and also analyzing the trend of the ticket booking. Analyzing these sections of the firm gives a better understanding of the financial condition of the company. The EBITDA of NCL improved a lot from $6.6 million to $37.4 million in the fourth quarter and a huge increment of over the year from $228.1 million to $324.1 million in the year 2009 (NCL, 2011). Since EBITDA don’t include interest expenses, income taxes and amortization it can also be a good addition if the additional elements are calculated for more accurate productivity measurement. Describe the service package offered by NCL to its customers. Visit the â€Å"Life Onboard† section of several cruise line websites and the insight provided by the film, â€Å"Cruise Inc† to gain a better understanding of service packages offered by cruise lines. The service packages offered by Norwegian Cruise Line ranges from high premium class to the economic class to attract all types of customer, especially who have not experienced their journey on a cruise in their life. The ‘Free Style’ introduced in the year 2000 from the company attracts each and every people of the society to avail the service with a huge collection of services and entertainment for the customers on the cruise. The resort vacation experience of the customer on the cruise is the major attraction for the customers. The cabin rates of NCL Pearl ranges from $35 to $2000 per day for each person on the cruise depicts the strategy from the company how they implemented the competitive advantage to grab the market from the low to the high market segment. The seven speciality restaurants provide foods for every need of the customers with a variety of food habits and taste.