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Working capital performance

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You are the CFO of The WEBCO Bicycle Company. WEBCO has Days Sales Outstanding (A/R Days or DSO), Inventory Days, Payable Days and Operating Profit Margin of 75, 48, 44 and 16.5% respectively. The bicycle industry average for these working capital and profitability metrics are 55, 43, 50 and 12.7% respectively.

WEBCO's Board of Directors continues to challenge you at the quarterly BOD meetings on WEBCO's working capital performance and the cash conversion cycle (i.e. working capital days). As the CFO, what is your response to the Board and what are the remedies you have planned to address WEBCO's current working capital metrics.

Reference no: EM133114537

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