easy · Investment Banking
What does a Cash Conversion Cycle (CCC) of 60 days signify for a manufacturing company?
- The company has 60 days of cash on hand to cover operating expenses.
- The company pays all its suppliers within 60 days of receiving an invoice.
- It takes 60 days to convert investment in inventory into cash from sales.
- The company's inventory sits on the shelf for exactly 60 days before being sold.
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