Cash Conversion Cycle (CCC)

Knowledge Center


Description of Cash Conversion Cycle. Explanation.



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 Special Interest Group

Special Interest Group (15 members)

Cash Conversion Cycle Forum  

Recent topics

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

Best Practices - Cash Conversion Cycle

Expert Tips - Cash Conversion Cycle

Advance yourself in business administration and management

Resources - Cash Conversion Cycle

News about Cash Conversion Cycle


Videos about Cash Conversion Cycle


Presentations about Cash Conversion Cycle


Books about Cash Conversion Cycle


More about Cash Conversion Cycle


Accelerate your management career

Special Interest Group Leader


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
2018 12manage - The Executive Fast Track. V15.0 - Last updated: 11-12-2018. All names of their owners.