The Cash Conversion Cycle (CCC) is a financial metric that measures the number of days a company takes to convert its investments in inventory and other resources into cash flows from sales. Calculated as Days Inventory Outstanding (DIO) + Days Sales Outstanding (DSO) − Days Payable Outstanding (DPO), a shorter CCC indicates that a business is efficiently managing its working capital — collecting receivables quickly, turning over inventory fast, and maximising supplier credit. A longer CCC can signal liquidity strain or operational inefficiency. For equity analysts and investors on Ventura Securities, the CCC is a critical tool for assessing working capital health, comparing operational efficiency across companies within a sector, and identifying businesses with strong cash generation characteristics.
For android only
