Free cash flow conversion is a liquidity ratio used by both investors and the management team to manage cash flow effectively.
Imagine your company has sales that skyrocket, but on the other hand, the company does not have enough funds to pay debts, run the business, and cover expenses.
Here is free cash flow conversion tells us about a company’s effectiveness in converting its profit into cash.
In this article, I’ve included everything related to FCF conversion. So if you want to learn about what FCF conversion is, its formula, how to calculate it, and how to improve it, then you will like this post.