The cash conversion cycle is the amount of time taken to buy materials and produce a finished good plus the time needed to collect sales made on credit minus the time taken to pay suppliers for purchases on credit.

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The cash conversion cycle (CCC) is a financial metric that measures the length of time it takes for a business to convert its investments in inventory and other resources into cash flow from sales. It is calculated by adding the number of days a company takes to sell its inventory, the number of days it takes to collect accounts receivables, and then subtracting the number of days it takes to pay its accounts payable.

The Cash Conversion Cycle Is the Amount of Time Taken