What can a company do to shorten its cash conversion cycle?

Question

Quizplus · Accepted Answer

Shortening the cash conversion cycle involves speeding up the inflow of cash and slowing down the outflow of cash. Turning over inventory quickly (A) generates cash from sales faster, and collecting accounts receivables quickly (B) ensures that cash is received sooner. Paying accounts slowly (C) delays the outflow of cash. Therefore, all three options (A, B, and C) are effective in shortening the cash conversion cycle.

What Can a Company Do to Shorten Its Cash Conversion