“If one of your supply chain partners suffers a debilitating disruption, how quickly can it recover? A healthy company should have the working capital on hand to take immediate financial action.
Determining the overall health of a company is far more complex than simply looking at revenues and profits. Equally important, especially for investors, is a measure illustrating the liquidity of its cash flow and operating activity. A business’s on-hand capital position can quickly be improved by crunching its cash conversion cycle — in other words, receiving payment on an invoice ASAP…”