Accounting

Cash Conversion Cycle

Cash Conversion Cycle

The cash conversion cycle (CCC) is a metric that expresses the amount of time, in days, which it takes for a business to convert learning resource inputs into cash flows. The cash conversion cycle attempts to measure the volume of time each online input dollar is tangled up in the creation and sales process before it is converted into cash through sales in order to customers. This metric looks at the volume of time needed to market inventory, the amount of their time needed to collect receivables and the amount of time the company is afforded to pay its bills with out incurring penalties.