How quickly a company's inventory is sold and receivables are collected is referred to as which of the following?

Question

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The working capital cycle refers to the amount of time it takes a company to convert its inventory and receivables into cash. This measures the efficiency of a company's operations and indicates how quickly it is able to generate cash flow from its assets. The inventory turnover ratio (B) measures how quickly a company is selling its inventory specifically, while return on inventory (A) measures the profit generated from inventory. The inventory to cash ratio (D) is not a commonly used financial ratio.

How Quickly a Company's Inventory Is Sold and Receivables Are