My Ssec Capstone Project The cash conversion cycle

The cash conversion cycle

The cash conversion cycle (CCC) is a metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows. A large cash cycle means that it takes too long for the company to create cash because the inventory is not sold fast or it takes too long to collect the cash or it has a small credit period from its suppliers.
A short cash cycle means that the company is overtrading because it allows a very short credit period to customers but it takes a large credit period from its suppliers.

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