CASH CONVERSION CYCLE - CCC

Measure indicating the number of days it takes for a firm to generate revenues with assets. It endeavors to gauge the amount of time every net input is connected to the production and sales process before exchanging into cash through sales to customers. The cycle looks at the length of time needed to sell inventory, amount of time needed to collect receivables, and length of time the company afforded in paying bills without incurring penalties. Also called cash cycle.