Explanation:

The Working Capital Cycle for a business is the length of time it takes to convert the total net working capital (current assets less current liabilities) into cash.  Businesses typically try to manage this cycle by selling inventory quickly, collecting revenue from customers quickly, and paying bills slowly to optimize cash flow.
For most companies, the working capital cycle works as follows:

• The company purchases, on credit, materials to manufacture a product. For example, they have 90 days to pay for the raw materials (payable days).
• The company sells its inventory in 85 days, on average (inventory days).
• The company receives payment from customers for the products sold in 20 days, on average (receivable days).
• In the first step of the process, the company gets the materials it needs to produce inventory but doesn’t initially dispense any cash (purchased on credit under accounts payable).  In 90 days’ time, it will have to pay for those materials.