Question: Given that a CFO is trying to become more efficient in the use of working capital, and given that you are advising the CFO in
Given that a CFO is trying to become more efficient in the use of working capital, and given that you are advising the CFO in the area, you start a conversation around the Cash Conversion Cycle. Your advice towards becoming more efficient would involve Work to decrease DSO and decrease APO which would shorten the Cash Conversion Cycle Work to decrease DSO but increase the Average Collection Period, and this would shorten the Cash Conversion Cycle. Work to decrease DSO but lengthen APO which would shorten the Cash Conversion Cycle. Work to increase DSO which would shorten the Cash Conversion Cycle
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