Cash Conversion Cycle (CCC)

The Cash Conversion Cycle measures the number of days it takes for the company to convert cash invested in its operating activities back into cash received from customers. It integrates receivables, inventory, and payables into a single efficiency metric, providing a holistic view of how effectively working capital is managed across the operating cycle. CCC is a key indicator of operational cash efficiency, as it captures both the speed of cash inflows and the timing of cash outflows.