From the course: Tableau Supply Chain Dashboarding
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Calculate the cash conversion cycle - Tableau Tutorial
From the course: Tableau Supply Chain Dashboarding
Calculate the cash conversion cycle
One of the most important strategic measures that a company can have is the cash conversion cycle. That is the number of days it takes you to transform cash that you spend making something into cash that you receive from selling it. In this movie, I will show you how to calculate the cash conversion cycle in Excel and then go further and include it in a dashboard in Tableau. I've started in Excel, and the workbook I'm using is 06_02_CashConversionCycle. You can find it in the Chapter 6 folder of the Exercise Files collection. This workbook has two sheets. I'm currently on Sheet 1 for cash conversion cycle, and I have the formula here at the top. That is the days of inventory outstanding plus the days of sales outstanding minus the days of payables outstanding. The days of inventory is the amount that you are spending to hold inventory. And then there is days of sales outstanding, and that reflects the amount of money that you are owed by your customers. So we use the starting and…
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