Cash Conversion Cycle
Also called: CCC, working capital cycle
The cash conversion cycle measures how many days cash is tied up between paying suppliers and collecting from customers. A negative cycle — collecting before you pay — means customers fund your growth, which is the structural advantage behind Amazon and most subscription businesses. Shortening it releases cash without earning a cent more profit.
Formula
CCC = Days inventory + Days receivable − Days payable
Want more than a definition? Learn it in Capital Quarters →