LVT Expenses, page-135

There are two measures of cash conversion rates that tech investors and VCs look at. 1. Revenue cash conversion, comparing revenues to cash receipts and 2. Profit cash conversion, comparing net income to free cash flow.

As regards revenue cash conversion. There are 2 metrics we look at.
1. Lag. What is the lag between ARR being matched by cash receipts. On a growth company, 2 quarters would be good. 4 quarters would suggest installation delays or heavy discounting or over generous 100day+ terms
2. Based on the typical 60 day install and quarterly terms we also compare cash receipts this q with announced ARR 2 quarters prior as a percentage. This is lumpy in companies with annual subscribers. One can try annualising this percentage on a trailing 12 month basis.

Hope me this is helpful in factually checking conflicting claims about cash conversion