By understanding and optimizing your cash conversion cycle, you can ensure your business maintains good liquidity and that there is always enough cash to invest in new opportunities, cater to its responsibilities, and maintain its sustenance drive.
As a business owner or finance executive, you should pay attention to the liquidity status of your business because it impacts the financial flexibility of your business to cater to everyday operations and settle urgent and unexpected needs without running out of cash.
If you must get quantifiable, valuable, and tangible data to propel your business forward, you must learn to focus and measure both financial and non-financial KPIs that align with your business goals, strategic priorities, and key drivers.