Cash Conversion Cycle (CCC)

Definition

A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. The cash conversion cycle attempts to measure the amount of time each net input dollar is tied up in the production and sales process before it is converted into cash through sales to customers. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills w

Formula

Tags

customer, conversion, cash, cash flow, capital, inventory, sales, accounts receivable, accounts payable

Metadata

Category: VRM Financial Ratios · Added: May 17, 2026