Cash conversion efficiency is a measure of how well a company turns its sales or profits into cash. It is most often calculated as operating cash flow divided by revenue, CCE=Operating cash flow÷Revenue, so a company with $40 million of operating cash flow on $500 million of sales has a ratio of 8 per cent. Some analysts instead compare cash flow with net income or EBITDA, a figure usually called a cash conversion ratio, so the basis should always be stated. A rising figure suggests that profits are being collected rather than tied up in receivables and inventory; a falling one may point to slower collections or a build-up of working capital. The measure is often read with the cash conversion cycle, which shows how long cash is tied up.