Why Cash Conversion Cycle Matters Alongside Revenue Growth

The article argues that revenue shows a business is selling, but the cash conversion cycle reveals how quickly those sales become cash. The author examines inventory days, receivable days, and payable days together rather than relying on any single metric. Longer inventory holding and slower customer payments can tie up cash even while revenue and profit rise. The key question is whether a company can fund this working capital from its operations or whether growth keeps increasing its funding needs. The piece is general information only and not financial advice.