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CRISIL’s analysis of the cash conversion cycle (CCC) of MSMEs it rates shows significant variations, even within the same industries. It also shows that slow CCC is plaguing the entire sector. CCC refers to the time taken to sell inventory, collect receivables and pay suppliers.
As reflected in the chart, those in the higher quartile have more than twice the median CCC in the auto components, engineering & capital goods, and textiles sectors, whereas for electricals and pharma, the variation is only marginally less.
To be sure, the variation within an industry is a function of the bargaining
As reflected in the chart, those in the higher quartile have more than twice the median CCC in the auto components, engineering & capital goods, and textiles sectors, whereas for electricals and pharma, the variation is only marginally less.
To be sure, the variation within an industry is a function of the bargaining
