Disparate operating and cash conversion cycles can spell a dangerous mismatch between cash outflows and inflows.

Question

Quizplus · Accepted Answer

Disparate operating and cash conversion cycles mean that a company is taking longer to turn its inventory into cash and collect payments from customers, while also paying its own suppliers and other expenses. This can result in a dangerous mismatch between cash outflows and inflows, potentially leading to cash flow problems and financial distress.

Disparate Operating and Cash Conversion Cycles Can Spell a Dangerous