Cash Conversion Cycle Explained: DSO, DIO, DPO
The cash conversion cycle measures how many days a company’s cash is tied up in operations. Here is the formula, a worked example, and why negative CCC is the holy grail of working capital.
The cash conversion cycle measures how many days a company’s cash is tied up in operations. Here is the formula, a worked example, and why negative CCC is the holy grail of working capital.