Financial Education

Cash Conversion Cycle (CCC)

Days Inventory + Days Sales Outstanding − Days Payable Outstanding

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Fundamental

Cash Conversion Cycle (CCC)

Days Inventory + Days Sales Outstanding − Days Payable Outstanding

Definition

CCC measures how quickly a company converts its investments in inventory and receivables into cash, minus how long it takes to pay suppliers. Shorter CCC indicates better working capital management and cash flow efficiency.

Related Topics

#working capital #cash flow #efficiency #inventory

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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