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% would reduce the days inventory outstanding, days sales outstanding, and days payable outstanding, leading to a shorter cash conversion cycle and thus improving cash flow efficiency.

If Managers Could Automatically Change Each Term in the Equation