Exams › IBPS PO › General Awareness
A low Cash Conversion Cycle (CCC) implies:
- The company has high levels of inventory
- The company is experiencing cash flow problems
- The company can convert invested capital into cash quickly
- The company has a high level of accounts receivable
Correct answer: The company can convert invested capital into cash quickly
Solution
The Cash Conversion Cycle measures the time taken to convert investments in inventory and other resources into cash from sales. A low CCC means the company recovers cash quickly and operates efficiently.
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