If managers could automatically change each term in the equation of the cash conversion cycle, which of the following would be expected to provide the most benefit?

Question

Quizplus · Accepted Answer

Decreasing the numerator of each term by 10% in the cash conversion cycle equation effectively reduces the amount of time inventory is held, the amount of time it takes to collect receivables, and increases the time to pay off payables. This would speed up the cash conversion cycle, making cash available more quickly and improving the company's liquidity position.

If Managers Could Automatically Change Each Term in the Equation