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Page modified: Saturday, June 24, 2006 10:36:06

By capital freeze duration one understands the duration, in which for an investment (financial) principal needed is bound, until the profits gained with the help of the investment flow back in the form of incomes and/or deposit stream into the cash of the enterprise.

The duration of the capital freeze is a critical factor with the financing of investment projects, since it affects the liquidity considerably.

To compute knowing the cash ton cash Cycle Time by one the DLZ (turn-around time) - achievement production with the DLZ Lieferforderungen added and of it subtracts the DLZ Lieferverbindlichkeiten.


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