Cash Conversion Cycle (CCC)

Knowledge Center





Summary, forum, best practices, expert tips and information sources.

 

Cash Conversion Cycle (CCC)

What is the Cash Conversion Cycle (CCC)? Meaning.

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 Special Interest Group


Special Interest Group (19 members)

Forum about Cash Conversion Cycle  

The most recent topics about: Cash Conversion Cycle.


🔥 NEW Order to Cash Process
Dear all, I'm looking for literature on order to cash process... Who can recommend a good book? (...)
5
 
 
Best Practices about Cash Conversion Cycle

Here you will find the most valuable ideas and practical suggestions.


Expert Tips about Cash Conversion Cycle

Here you will find professional advices by experts.


Information Sources about Cash Conversion Cycle

Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Special Interest Group Leader

Are you an expert in Cash Conversion Cycle? Sign up for free

Link to this knowledge center

Copy this code to your web site:

 
 

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 / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 30-9-2020. All names of their owners.