Negative working capital example = "collect money from customers before they have to acquire components or spend money. This phenomenon allows companies to grow without raising capital, even if day-to-day profitability is zero.” Bill Gurley/Jane Hodges archive.fortune.com/magazines/fort…
"Cash conversion cycle (CCC) = a calculation of how long it takes a company to collect on the sale of inventory. The CCC equals days in sales outstanding (DSO) plus days in inventory outstanding (DIO) less days in payables outstanding (DPO)." Mauboussin covestreetcapital.com/wp-content/upl…
"Some firms, including Apple, have a negative CCC, which means that the company receives cash on the sale of inventory before it pays its suppliers. This effectively makes the company’s suppliers a source of financing and can be relevant in competitive interactions." Mauboussin
