Zoe Limited has a cash conversion cycle of 30 days, receivables days of 40 and payables days of 20. What is Zoe Limited's inventory days figure?

Question

Quizplus · Accepted Answer

The cash conversion cycle is calculated as inventory days + receivables days - payables days. Given the cash conversion cycle is 30 days, receivables days are 40, and payables days are 20, the equation is: Inventory days + 40 - 20 = 30. Solving for inventory days gives 10 days.

Zoe Limited Has a Cash Conversion Cycle of 30 Days