Executive & Board / Corporate Finance
Free Cash Flow Conversion FCF Conversion / Cash Conversion (board sense)
What share of accounting profit actually turns into spendable cash.
The fork, why two teams get different numbers
First, and most dangerous: this "cash conversion" is not the working-capital Cash Conversion Cycle (DIO + DSO − DPO), a frequent and costly collision at the board table, because one is a percentage and the other is measured in days.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 230 (Statement of Cash Flows) · Non-GAAP ratio, no authoritative standard