What is Cash Conversion Cycle (CCC)? How it can be calculated?

Question added by Mohamed Ashour , Accounting Manager , Al Riyadiah Medical Company
Date Posted: 2016/01/19

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by Greeshna Bhatia , Internship , Etihad Airways,

Cash conversion cycle is basically the amount of time it takes for a raw material to covert into cash. It measures management efficiency

It is calculated by adding days of inventory in hand and days of receivables and then subtracted with days of payable.

Short the figure efficient the management, however it needs be related with industry averages

An analyst has calculated the following ratios for a company
Top Answer: Calculate, classify, and interpret activity, liquidity, solvency, profitability and valuation ratios.Eval ... See More

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Which one of the following equations can be used to calculate the cash conversion cycle A. CCC=ACP+APP-AAI B. CCC=AAI+ACP C. CCC=AAI+ACP-APP?
Top Answer: I would agree with Mr Vinod' answer ... true ! See More

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What is Cash Conversion Cycle and how to calculate?
Top Answer: <p>Cash conversion cycle is the number of days it takes a company to convert its investment in inve ... See More

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How do you calculate the cash conversion cycle?
Top Answer: CCC = Days of Sales Outstanding PLUS Days of Inventory Outstanding MINUS Days of Payables Outstanding. See More

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