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Cash & working capital
The cash conversion cycle
The number of days between paying for inputs and collecting from customers: inventory days plus receivable days, less payable days.
Owned by: Senior analystTest band: Senior analyst
The formula
CCC = DIO + DSO − DPO
In practice
A negative cycle means customers fund the business — subscriptions billed annually up front. A long positive one means growth needs financing.
The kind of thing the test asks
- DIO 40 days, DSO 50 days, DPO 30 days. The cash conversion cycle is…
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