What is Cash Conversion Cycle?
Cash conversion cycle = Days inventory + Days receivable − Days payable. The lower, the less working capital the business needs.
A real Kenyan example
45 + 15 − 30 = 30 days CCC. Healthy.
Formula
CCC = DIO + DSO − DPO
Why it matters
CCC tells you how much working capital your sales velocity actually needs.
FAQs
Negative CCC?
Yes, supermarkets and Amazon famously run negative.
Cutting DSO?
Invoice immediately, follow-ups at 7/14/21 days.
Extending DPO?
Negotiate longer terms with suppliers.
Balance sheet measure?
Yes, derived from balance-sheet items and operating cycle.
Does Veira automate?
Yes.