Cash Conversion Cycle (CCC) Excel Calculator
The Cash Conversion Cycle Calculator is a template that helps to calculate the length of the Cash Conversion Cycle (CCC). This is one of the key metrics that evaluate the effectiveness of the company's inventory sales. It is expressed in the number of days and stands for the period during which a company sells all of its inventory outstanding and receives the payment for it.
The required information includes basic items from the Profit and Loss statement and the Balance Sheet. The CCC Calculator allows to easily plug-in the necessary information in order to obtain results for different periods.
In fact, the company's operation is effective, if the gap between the number of days payable and receivable is small. However, the best state a company can reach is when days payable are larger than days receivable. In this case, creditors will technically be financing the company's working capital.
The functionality of the Cash Conversion Cycle Calculator:
-> calculate the Cash Conversion Cycle using basic information from your financial statements;
-> calculate for a variety of different periods: month, quarter, half-year or the whole year.
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Feel free to contact our team in case you need support with budgeting your company. Our team provides financial modeling services to companies around the world. Actually, this is our core business. We have a lot of experience with creating budgets for service companies and know the specifics of the business.
