Jinsi ya kukokotoa Cash Conversion Cycle

Cash Conversion Cycle ni nini?

Measures days from paying suppliers to collecting from customers. Shows how long cash is tied up in operations.

Fomula

CCC

DIO + DSO - DPO — DIO + DSO - DPO

DIO

DIO value — Variable used in the calculation

DSO

DSO value — Variable used in the calculation

DPO

DPO value — Variable used in the calculation

Mwongozo wa Hatua kwa Hatua

1. 1Days Inventory Outstanding (DIO): days before inventory sells
2. 2Days Sales Outstanding (DSO): days to collect from customers
3. 3Days Payable Outstanding (DPO): days before paying suppliers
4. 4CCC = DIO + DSO - DPO

Mifano Iliyotatuliwa

Makosa ya Kawaida ya Kuepuka

• ✕Not separating types of inventory (raw, WIP, finished)
• ✕Assuming CCC remains static as business grows

Maswali yanayoulizwa mara kwa mara