BusinessAugust 21, 2026

convertibility

kun-vur-tuh-BIL-uh-tee

Definition

The ease or extent to which reported accounting profits can be realized as actual cash inflows.

Etymology

Derived from the Latin 'convertere,' meaning to turn around or transform, combined with the suffix '-ibility' to denote the capacity to be changed into another form.

In the news

The article uses the term to highlight a key investment risk: whether the company's reported growth and earnings are backed by real cash or just accounting entries.

Nuobikan Artificial Intelligence Technology (Chengdu) (SEHK:2635) Stock Drops As Cash Quality Clouds Profit Growth

Read the full article ↗

Simply Wall Street

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