Cash Conversion Cycle (CCC)

Knowledge Center

   

Contents

  1. Summary
  2. Forum
  3. Best Practices
  4. Expert Tips
  5. Resources
  6. Print
 
Cash Conversion Cycle (CCC)

Definition Cash Conversion Cycle (CCC). Description


The Cash Conversion Cycle (CCC) is a financial performance ratio, which represents the length of time that it takes a company to convert resource inputs into cash flows.


The metric is in essence the amount of time a company needs to sell its inventories and to collect its receivables, as well as the amount of time a company is granted to pay its suppliers without incurring penalties, and as such, focuses on the length of time that funds are tied up in the business cycle.


Although large companies tend to have shorter CCC periods than small businesses due to greater negotiation power with customers and suppliers, it can be said that the shorter the cycle, the less time funds are tied up in the business process, and thus the better it is for a company's bottom line.


Calculation of Cash Conversion Cycle. Formula

The CCC ratio is calculated as follows:


CCC = Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) - Days Payable Outstanding (DPO).


The Cash Conversion Cycle (CCC) is also known in short as Cash Cycle.


Cash Conversion Cycle Forum
  Order to Cash Process
Dear all, I'm looking for literature on order to cash process... Who can recommend a good book?...
     
 

Cash Conversion Cycle Special Interest Group


Special Interest Group

 

Best Practices - Cash Conversion Cycle Premium

Expert Tips - Cash Conversion Cycle Premium

Resources - Cash Conversion Cycle Premium
 

News

Cash Conversion Cycle
     
 

Videos

Cash Conversion Cycle
     
 

Presentations

Cash Conversion Cycle
     
 

More

Cash Conversion Cycle
     
Special Interest Group Leader

You here


 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Cash Conversion Cycle (CCC) summary and forum.

About 12manage | Advertising | Link to us | Privacy | Terms of Service
Copyright 2016 12manage - The Executive Fast Track. V14.1 - Last updated: 29-9-2016. All names tm by their owners.