Mastering Your Cash Flow
An interactive analysis of how the Cash Conversion Cycle (CCC) impacts financial health, turning operational efficiency into tangible cash flow optimization.
The Anatomy of the Cash Conversion Cycle
The CCC measures the time it takes to convert investments in inventory and other resources into cash from sales. The goal is to make this cycle as short as possible.
DSO
Days Sales Outstanding: How fast you collect from customers.
DIO
Days Inventory Outstanding: How fast you sell your inventory.
DPO
Days Payables Outstanding: How fast you pay your suppliers.
CCC
Cash Conversion Cycle: The total time to get your cash back.
Our Current State: The Baseline
This is our starting point. With a Cash Conversion Cycle of 10 days, we have a solid foundation, but there’s significant room for optimization and cash flow improvement.
30
Days Sales Outstanding
40
Days Inventory Outstanding
40
Days Payables Outstanding
10
Cash Conversion Cycle
Scenario Analysis: The Power of Levers
How do changes in payment terms and collection speed affect our overall cycle? This chart compares our baseline against three potential scenarios to reveal key operational levers.
The Bottom Line: Impact on Cash
Operational changes directly translate to financial results. This visualization shows the dramatic cash impact of each scenario, highlighting the most effective strategies for boosting working capital.