As a business owner, you're always looking for ways to improve your company's financial health. One important metric that can help you understand your cash flow and financial performance is the Cash Conversion Cycle (CCC).
In this article, we'll explain what the CCC is, how it's calculated, and how you can optimize it to improve cash flow.
What is the Cash Conversion Cycle (CCC)?
How to compute for DIO, DSO, and DPO:
How does the CCC impact your business ?
A shorter CCC means that your business is able to generate cash more quickly and efficiently, which can help you reinvest in your business, pay down debts, or distribute profits to shareholders.
On the other hand, a longer CCC can put a strain on your cash flow, making it more difficult to meet financial obligations and invest in growth opportunities.
Here are some tips to help you optimize your CCC and improve your business's cash flow:
To go further, here are two of our previous blog articles with similar subjects:
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Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.