Which of the following would increase a firm's cash conversion cycle?

Question

Quizplus · Accepted Answer

Increasing inventory days means that the firm will be holding onto inventory for a longer period of time before selling it, which will delay receiving cash from customers. This will increase the firm's cash conversion cycle. Decreasing accounts receivable days, decreasing accounts payable days, and increasing cash days would all have the opposite effect and decrease the firm's cash conversion cycle.

Which of the Following Would Increase a Firm's Cash Conversion