Time
(days)
−50
0
50
100
150
200
Item delivered to inventory
Cash Conversion Cycle is the number of days between paying the supplier and receiving payment from the customer.
| ( | 53 days | ) | = | ( | 53 days | ) | + | ( | 53 days | ) | − | ( | 53 days | ) |
| Cash Conversion Cycle | Days Inventory | Days Sales Outstanding | Days Payable Outstanding |
The cash conversion cycle (CCC) is the number of days that pass between the day an organization pays a supplier for an item and the day when the organization receives payment from a customer for that item (or a product that includes that item).
Use the sliders to change the days where three events happen: The supplier is paid (for an item), the item is sold from inventory, and the customer's payment is received (for that item or a product that includes that item). What causes a CCC to be positive? Negative?