CF LAB

Cash conversion cycle

CCC

For learning purposes only. Do not use this calculator or its data to make investment decisions. Results are simplified teaching examples, and company figures may be incomplete or out of date.

What is this?

A business spends cash on stock, waits to sell it, then waits again for customers to pay. Meanwhile it gets some time to pay its own suppliers. The cash conversion cycle (CCC) counts the days between paying suppliers and collecting cash from customers: how long the company’s own money is tied up in day-to-day operations. Shorter is usually better, because that cash could be used elsewhere or doesn’t need to be borrowed.

How to read the chart

  • The timeline follows one batch of goods from the day it is bought.
  • Purple: days the goods sit in inventory (DIO). Teal: days customers take to pay (DSO).
  • Amber: days before the company pays its supplier (DPO).
  • Blue: the cash gap, the CCC. If it turns green, suppliers are paid after customers pay, so the cycle is negative.
Chart ↓
Cash conversion cycle
74 days
How long the company’s own cash is tied up between paying suppliers and collecting from customers.
Inventory days DIO
Collection days DSO
Payment days DPO
Cash tied up
What this means

Try this

Where the cash is tied up

Inventory and unpaid customer bills hold the company’s cash; money owed to suppliers gives some of it back. What’s left is the working capital the company must fund itself.

How the companies compare

Each company’s cash conversion cycle from its latest annual accounts. Click a bar (or tab to it and press Enter) to load that company.

How it’s calculated
About the data: sources and method

  • Accounts: the latest full financial year from stockanalysis.com’s income statement and balance sheet (PKR millions). Hub Power comes from its own audited consolidated accounts, because the data site shows no gross profit for it.
  • Year ends differ: most of these companies end their year in June; Fauji Fertilizer and Engro Fertilizers in December (dates above).
  • Cost of goods sold = revenue − gross profit. Inventory, receivables (trade accounts receivable) and payables (accounts payable) are averages of the opening and closing balances for the year.
  • Days use a 365-day year. Company figures are rounded to whole PKR millions, and the calculations use exactly those numbers.