Q » What is cash conversion cycle (CCC)?

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 summing the days inventory outstanding, days sales outstanding, and subtracting the days payable outstanding. CCC is crucial for understanding the efficiency of a company’s operations and cash flow management.

Michael

06 Dec, 2025

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A »The cash conversion cycle (CCC) measures how long a company takes 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). A shorter CCC indicates better liquidity and operational efficiency.

David

06 Dec, 2025

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