Other things held constant, if a firm "stretches" (i.e., delays paying)its accounts payable, this will lengthen its cash conversion cycle (CCC).

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Stretching accounts payable (delaying payment to suppliers) actually decreases the cash conversion cycle (CCC) because it increases the firm's cash on hand for a longer period, thus reducing the time and cash needed to cover its short-term liabilities.

Other Things Held Constant, If a Firm "Stretches" (I