The focus of this paper is on small and medium-sized enterprises, which are the driver of any economy in terms of their representation in the market, in terms of the number of enterprises, number of employees, exports and added value. SMEs often face difficulties in doing business, especially those related to maintaining liquidity. Accordingly, the author analyzed current assets and current liabilities of small and medium enterprises using the money conversion cycle as one of the most important indicators of current assets and current liabilities management. The purpose of the paper was to establish what kind of credit policy is used by the observed companies and to determine the effectiveness of inventory management. The data used were taken from the basic financial statements of the balance sheet and the profit and loss account from the FINA website. The financial statements for 2018 and 2019 were used. The efficiency of debt collection, the success of inventory management and the use of trade credit of suppliers as a source of short-term financing were analyzed. The most successful small and medium enterprises were analyzed according to the criterion of realized profit of the observed retail and wholesale sectors through the money conversion cycle. The obtained results indicate that wholesale companies have a shorter conversion cycle on average 52.88 days. On the one hand, it is recommended to apply a stricter credit policy and to give advances for early payments in order to speed up collection. On the other hand, greater use of trade credits suppliers, but within the legal framework. Also, inventories should be managed more efficiently thus reducing all storage costs.