Executive & Board / Corporate Finance
Cash Conversion Cycle CCC (cash-to-cash cycle time)
How many days cash is tied up in operations, from paying suppliers to collecting from customers, before it returns.
The fork, why two teams get different numbers
First and most costly, the name collides with free-cash-flow conversion: this CCC is a working-capital duration measured in days, not the percentage of profit turning into cash.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 230 (Statement of Cash Flows) · APICS / ASCM SCOR (cash-to-cash cycle time)