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The Cash-Conversion Cycle

Inside this lesson

Define DIO, DSO, and DPO as day-counts.
Compute the cash-conversion cycle as DIO + DSO - DPO.
Explain why a shorter cash-conversion cycle frees up working capital.

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Educational content only. This course explains inventory and working-capital control concepts and the math behind them; it is not financial, accounting, investment, or professional certification advice, makes no recommendations, and predicts no cost, cash, or business outcomes. All figures are illustrative synthetic teaching examples. Consult a qualified professional before making financial or business decisions.