Why Is Apple's Cash Conversion Cycle Significantly Shorter Than Samsung's?

The cash conversion cycle looks at the amount of time a company takes to sell its inventory, collect its receivables and the time it takes to pay suppliers. The metric indicates how efficiently a company is managing its working capital and generating cash flows. Apple’s cash conversion cycle stood at -53 days for FY’15, per our estimates, implying that it practically ran its supply chain with credit extended by its vendors. In contrast, Samsung has a long CCC of close to 78 days. Below, we l...