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Q » Define cash conversion cycle (CCC).

Steven

06 Dec, 2025

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A » The Cash Conversion Cycle (CCC) is a financial metric that measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It is calculated by adding the days inventory outstanding (DIO) and days sales outstanding (DSO), then subtracting the days payable outstanding (DPO). This cycle helps businesses understand their operational efficiency in managing working capital.

Michael

06 Dec, 2025

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A »The cash conversion cycle (CCC) measures the time it takes for a company to convert inventory into cash. It's calculated by adding days inventory outstanding (DIO) and days sales outstanding (DSO), then subtracting days payable outstanding (DPO). CCC = DIO + DSO - DPO, indicating a company's liquidity and efficiency in managing working capital.

David

06 Dec, 2025

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