Definition
The Cash Conversion Cycle measures the time it takes for a business to convert inventory investments into cash flow from sales.
Related Services
CCC analysis is used in working capital management, supply chain optimization, and financial health assessments.
Problem and Application
A lengthy CCC can strain cash flow, while a shorter cycle improves liquidity. Businesses use CCC to identify bottlenecks in operations and improve efficiency.
Conclusion
The CCC is a critical metric for assessing operational efficiency and financial stability, helping businesses optimize cash flow management.
