Ep. 03: Understanding the Cash Conversion Cycle (CCC)
Manage episode 486674480 series 3669503
In this episode, we delve into the Cash Conversion Cycle (CCC), a pivotal financial metric that gauges how efficiently a company manages its working capital. By understanding the CCC, businesses can optimize cash flow, reduce operational bottlenecks, and enhance overall financial health.
Investopedia
๐ What You'll Learn:
- The definition and significance of the Cash Conversion Cycle
- Breakdown of the CCC's three components:
- Days Inventory Outstanding (DIO)
- Days Sales Outstanding (DSO)
- Days Payable Outstanding (DPO)
- Real-world examples illustrating CCC calculations
- Strategies to shorten the CCC for improved liquidity
- The impact of CCC on business decision-making and growth
๐ Resources & Links:
- Read the full blog post: Understanding the Cash Conversion Cycle
- Explore the CCC Calculator: Cash Conversion Cycle Calculator
income-outcome.com
๐ Connect with Us:
- Website: www.Income-outcome.com
- LinkedIn: https://www.linkedin.com/company/2113511
- Twitter: @Income_Outcome
๐ง Listen & Subscribe:
- Apple Podcasts
- Spotify
- Google Podcasts
- Stitcher
4 episodes