What does the Cash Conversion Cycle (CCC) measure?

The CCC measures how long it takes for a company to convert its investments in inventory and receivables into cash through sales.

A good CCC varies by industry, but in general, a shorter CCC indicates that a company is efficiently managing its working capital and converting sales into cash. A long CCC may indicate inefficiency or potential liquidity problems.

How can a company improve its CCC?

Companies can improve their CCC by reducing the time it takes to sell inventory (DIO), accelerating the collection of receivables (DSO), or delaying payments to suppliers (DPO) without damaging supplier relationships.

Current Article

0%

Complete

All Articles

0%

Complete

Company Balance Sheets

What is CASH CONVERSION CYCLE (CCC)?

CASH FLOW

Cash flow is the total amount of money being transferred into and out of a business, especially affecting liquidity.

TradeReply is an advanced analytics suite designed for crypto and stock traders to input historical trading data and leverage powerful visuals, graphs, and metrics to optimize and develop effective trade strategies with real-time insights.

Current Article

0%

Complete

All Articles

0%

Complete

What is CASH CONVERSION CYCLE (CCC)?

CASH FLOW

Company

Partners

Community