The goal of the cash conversion cycle is to have as few days as possible in the process so as to be able to finance other activities with working capital.

Question

Quizplus · Accepted Answer

The cash conversion cycle measures the amount of time it takes a company to convert its investments in inventory and other resources into cash flow from sales. The goal is to have as few days as possible in this process to maximize working capital and support the financing of other activities.

The Goal of the Cash Conversion Cycle Is to Have