Question
A company plans on reducing its cash conversion cycle by collecting its accounts receivable from customers more quickly. Review the ratios discuss whether or not
A company plans on reducing its cash conversion cycle by collecting its accounts receivable from customers more quickly. Review the ratios discuss whether or not the company achieved this goal by executing its strategy.
Year: 2014 2013 2012 2011
Days Inventory Outstanding : 30.2 30.6 30.7 31.9
Days Sales Outstanding : 16.1 15.5 16.3 16.1
Days Payable Outstanding : 25.5 25.1 20.8 22.1
Cash Conversion Cycle : 20.8 21.0 26.2 25.9
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Short Term Financial Management
Authors: John Zietlow, Matthew Hill, Terry Maness
5th Edition
1516512405, 9781516512409
