>It's possible to design a business model in such a way that you have negative cash conversion cycles,
This seems like it would only be possible if your DPO is greater than the sum of your DIO and DSO. In other words, you are so tardy in paying your invoices (or good at negotiating payment terms, I suppose) that you manage to sit on cash worth more than the value of your inventory + outstanding receivables. That is... one way to run your business.
Maybe I am missing something but this seems like a house of cards. Eventually you need to pay your invoices, and time shifting that a bit doesn't actually make your business profitable.
Quite willing to accept I have missed something though.
This seems like it would only be possible if your DPO is greater than the sum of your DIO and DSO. In other words, you are so tardy in paying your invoices (or good at negotiating payment terms, I suppose) that you manage to sit on cash worth more than the value of your inventory + outstanding receivables. That is... one way to run your business.
Maybe I am missing something but this seems like a house of cards. Eventually you need to pay your invoices, and time shifting that a bit doesn't actually make your business profitable.
Quite willing to accept I have missed something though.