Series 79: Cash Conversion Cycle (CCC)

Taken from our FINRA Investment Banking Exam

Definition of the term Cash Conversion Cycle (CCC)...

a measurement of how quickly a business turns expenditures for raw inputs into cash received. The CCC is the number of days between the disbursement of cash for purchase of resalable goods (or raw inputs) and the collection of cash from customers for those same goods (or for finished goods produced using raw inputs).

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