CCC

CCC, or Cash Conversion Cycle, measures how efficiently a company manages its working capital. It calculates the time it takes for a business to convert its investments in inventory and other resources into cash received from customers. A shorter CCC indicates the company quickly turns inventory into cash, reducing the need for external financing. It considers the time to sell inventory, the time customers pay their bills, and the time the company takes to pay its suppliers. Essentially, CCC helps assess the company’s liquidity, operational efficiency, and ability to generate cash flow promptly.