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Cash conversion cycle  (CCC) - Financial definition

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Synonym:  operating cycle

Concise definition of the term cash conversion cycle

The cash conversion cycle measures the time between a company's purchase of inventory and the receipt of cash from accounts receivable.

Comprehensive definition of the term cash conversion cycle

CCC is the time a business needs to turn purchases into cash receipts from customers. It represents the number of days a firm's cash stays tied up within the operations of the business.

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