The formula for the cash conversion cycle is:

Question

Answer

Days’ inventory outstanding (DIO) – Days’ sales outstanding (DSO) – Days’ payable outstanding (DPO)

Answer

Days’ inventory outstanding (DIO) – Days’ sales outstanding (DSO) + Days’ payable outstanding (DPO)

Answer

Days’ inventory outstanding (DIO) + Days’ sales outstanding (DSO) + Days’ payable outstanding (DPO)

Answer

Days’ inventory outstanding (DIO) + Days’ sales outstanding (DSO) – Days’ payable outstanding (DPO)

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