Walmart is a successful retailer. It is cognizant of how quickly it disburses cash and then collects that cash. This is a measure of the firm's cash conversion cycle. The higher this number is relative to its competitors, the more liquidity risk the firm will face. A company can strive to reduce its cash conversion cycle by implementing a just-in-time inventory methodology approach.
Locate a retail company and calculate its cash conversion cycle. Locate a computer company and calculate its cash conversion cycle. Compare and evaluate these numbers. What can be done to reduce these companies' cash conversion cycles?
I want to use Target and Dell for the company's.