The accounts receivable turnover, inventory turnover and accounts payable turnover ratios are mathematical complements to the ratios that make up the cash conversion cycle.

Question

Quizplus · Accepted Answer

The cash conversion cycle is comprised of the accounts receivable turnover, inventory turnover, and accounts payable turnover ratios, therefore they are complimentary to each other.

The Accounts Receivable Turnover, Inventory Turnover and Accounts Payable Turnover