A cash conversion cycle Is the length of time from when the organization pays cash for supplies with raw materials to the time that it receives cash from selling those supplies. It is important for management to understand cash conversion cycles is this can directly impact the working capital within their organization (Zutter & Smart, 2019). As the organization strives to shorten any CCC time period it can allow them to operate more efficiently. When the organization realizes that through an efficient CCC limits, it can open opportunities to expand capital as it can free up cash opportunities that are not longer tied into ordering supplies. Leading to the organization to increase capital thus having more sales, turning a larger profit. Close observation from management CCC is recommended in the beginning stages so that they are careful not to overstretch the budget to where they are not able to afford new supplies and funds are tied up with supplies you have to be sold. this puts the organization of a disadvantage to pay future vendors and the organization needs to be careful to not to grow too rapidly to spread itself thin. References Zutter, C. J., & Smart, S. B