Question: Explain why cash conversion cycle for Internet retail companies (for example, Amazon.com or Wayfair.com) is usually very low, or even negative? Hint: Cash Conversion

Explain why cash conversion cycle for Internet retail companies (for example, Amazon.com

Explain why cash conversion cycle for Internet retail companies (for example, Amazon.com or Wayfair.com) is usually very low, or even negative? Hint: Cash Conversion Cycle = ICP + DSO - DPO. You should focus on how the business model/characteristics of Internet retail companies affect each of the elements in the Cash Conversion Cycle calculation.

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