A Venn diagram is an illustration that uses overlapping circles to show commonalities and differences between things or groups of things.

This guide breaks down the basics of horizontal and vertical lines with clear examples, practical applications, and simple diagrams so that remembering the difference becomes second nature.

Example of the Cash Conversion Cycle Here's an example—the data below are from the financial statements of a fictional retailer, Company X. All numbers are in millions of dollars.

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