Posted inAll private sectors / Finance & Control / Financial / Inventory / Sales

Cash Conversion Cycle (CCC)

Definition of this KPI:
The Cash Conversion Cycle (CCC) measures the time it takes for a company to convert its investments in inventory and other resources into cash. It provides a comprehensive view of the company’s cash management efficiency.


  • This KPI can be calculated as: CCC = DIO + DSO − DPO
  • The KPI will be measured as: time (e.g. years, minutes)
  • How to interpret the KPI: lower is better
  • The strategic objective to measure with this KPI: Shorten the cash conversion cycle to increase cash flow availability, thereby improving liquidity and enabling faster reinvestment in the business.
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