---
title: "Definition of CCC"
url: https://signalscreener.fr/definition/ccc/
markdown_url: https://signalscreener.fr/definition/ccc.md
description: "The number of days it takes to convert investments in inventory into cash from sales."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "CCC"
  - "Cash Conversion Cycle"
translations:
  de: https://signalscreener.fr/de/definition/ccc.md
  es: https://signalscreener.fr/es/definition/ccc.md
  fr: https://signalscreener.fr/fr/definition/ccc.md
---

# Cash Conversion Cycle

## What is CCC?

The number of days it takes to convert investments in inventory into cash from sales.

## Think of it like this

Like the time between paying for ingredients and getting paid for the meal you cooked - shorter means faster cash return.

## Formula

```
CCC = DSO + DIO - DPO
```

- **DSO**: Days Sales Outstanding (collection time)
- **DIO**: Days Inventory Outstanding (inventory holding time)
- **DPO**: Days Payable Outstanding (payment to suppliers)

## Why it matters

- Comprehensive cash flow efficiency measure
- Lower or negative CCC is better
- Shows working capital requirements
- Amazon famously has negative CCC

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 0 days | Excellent | Gets paid before paying suppliers (rare) |
| 0-30 days | Great | Very efficient cash cycle |
| 30-60 days | Good | Normal efficiency |
| > 90 days | Poor | Significant cash tied up in operations |

## Real-world example

Amazon's negative CCC means they receive customer payments before paying suppliers.

---

This is educational content, not financial advice.

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