An analyst is evaluating the liquidity of company A and finds a computation of the number of days of receivables, inventory, and accounts payable, as well

as the overall cash conversion cycle, as follows:

Fiscal Year Ended 29 Jan 2010 30 Jan 2009 1 Feb 2008

DSO 38 35 36

DOH 8 7 8

Less: Number of days of payables 82 67 80

Equals: Cash conversion cycle (36) (25) (36)

Evaluate Companys Liquidity position.