A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operating cycle (OC).

Name: A negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operating cycle (OC).
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A negative CCC means that the company is able to receive payment from customers and convert inventory into cash before having to pay its suppliers. This would only be possible if the APP exceeds the OC.

A Negative Cash Conversion Cycle (CCC) Means the Average Payment