How do you calculate the cash conversion cycle?

CCC = Days of Sales Outstanding PLUS Days of Inventory Outstanding MINUS Days of Payables Outstanding.

CCC = DSO + DIO – DPO.

DSO = [(BegAR + EndAR) / 2] / (Revenue / 365)

Days of Inventory Outstanding.

DIO = [(BegInv + EndInv / 2)] / (COGS / 365)

Operating Cycle = DSO + DIO.

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