Generally, the higher the cash conversion cycle, the healthier the company is financially.

Name: Generally, the higher the cash conversion cycle, the healthier the company is financially.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The lower the cash conversion cycle, the healthier the company is financially. A high cash conversion cycle indicates that a company is taking longer to convert its investments in inventory and accounts receivable into cash, which could be a sign of cash flow problems or inefficient operations.

Generally, the Higher the Cash Conversion Cycle, the Healthier the Company