Cash Management

CCC (Cash Conversion Cycle)

Cash Conversion Cycle

Total time between paying suppliers and collecting from customers. CCC = DSO + DIO - DPO.

The Cash Conversion Cycle (CCC) is the most comprehensive indicator of operating cash needs. A short CCC means the company quickly converts investments into cash. A negative CCC (rare) means the company is financed by its suppliers.

Related terms

DSO (Days Sales Outstanding)DPO (Days Payable Outstanding)DIO (Days Inventory Outstanding)Working Capital Requirement
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