# Cash Conversion Cycle

*Accounting & Reporting — Finicade finance glossary*

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`

**Also known as:** CCC, working capital cycle

**Related terms:** [Days Sales Outstanding](https://finicade.com/glossary/days-sales-outstanding), [Inventory Turnover](https://finicade.com/glossary/inventory-turnover), [Accounts Payable](https://finicade.com/glossary/accounts-payable), [Working Capital](https://finicade.com/glossary/working-capital), [Free Cash Flow](https://finicade.com/glossary/free-cash-flow)

Source: https://finicade.com/glossary/cash-conversion-cycle