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Cash Conversion Cycle Analysis for Working Capital Management : A company has average accounts receivable turnover of 8 times per year, average inventory turnover of
Cash Conversion Cycle Analysis for Working Capital Management: A company has average accounts receivable turnover of 8 times per year, average inventory turnover of 6 times per year, and average accounts payable turnover of 4 times per year. Calculate the company's cash conversion cycle and discuss how a shorter cycle improves liquidity and financial performance. Analyze strategies to optimize the cash conversion cycle and enhance working capital efficiency.
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