Do you agree or disagree with these thoughts? Why or why not?

The cash conversion cycle of a firm is dependent on its average age of inventory, average collection period, and average payment period. Goods generally stay in inventory longer during a recession because of market wide slowdowns in business. As such the average age of inventory increases which in turn increases the cash conversion cycle. The average payment period, or the rate at which customers pay firms or the rate at which firms collect on cash receivables, increases as firms offer extended terms to entice buyers in slow markets. In these cases, a CFO has a few options that would shorten the cash conversion cycle. First, they could reduce the amount of cash tied up in aging inventory. Following Just$-$In$-$Time inventory management practices, the firm would keep only the amount of inventory needed to fulfill orders on hand at any time. However, this model is susceptible to massive swings in economic activity as demonstrated by the Covid$-19$ pandemic where supply chains were strained globally. A CFO may also push for more aggressive payment periods from customers to reduce the average collection period. This comes at the cost of potentially alienating a portion of customers who do not have the means for speedy repayment due to recessionary conditions. As such, it may be a good idea for a CFO to avoid aggressive turnover strategies during recessionary cycles as the rest of the market may be unwilling or unable to accommodate such strategies.