Working Capital & Liquidity

How is the operating cycle related to the cash conversion cycle?

Operating cycle is $DOH+DSO$ before subtracting payables.

If $DOH=40$, $DSO=25$, and $DPO=50$, what does the firm's cash conversion cycle equal?

$15$ days.

If two similar firms have cash conversion cycles of $18$ days and $52$ days, which firm is managing working capital more efficiently?

Usually the firm with the $18$-day CCC.

How is a firm's cash conversion cycle computed?

$CCC=DOH+DSO-DPO$.