It is not possible to have a negative cash conversion cycle.

Question

Quizplus · Accepted Answer

A negative cash conversion cycle occurs when a company receives payments from customers before it has to pay suppliers, resulting in a negative number of days. This implies that the company is generating cash from its operations before it has to pay its bills. While this may seem desirable, it is not technically possible as it would require customers to pay immediately while suppliers allow extended payment terms, which is highly unlikely to occur on a consistent basis.

It Is Not Possible to Have a Negative Cash Conversion