Liquidity

What is Cash Conversion Cycle (CCC)?

The CCC measures how many days it takes a company to convert its inventory and receivables into cash — the speed of the business cash engine.

Formula

CCC = Days Inventory Outstanding + Days Sales Outstanding - Days Payable Outstanding

How to Interpret

Shorter CCC means faster cash generation. Negative CCC (like Amazon) means the company gets paid before it pays suppliers.

Typical Ranges

Below 60 days is good for most industries. Below 0 is exceptional.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by Cash Conversion Cycle.

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