Cash-to-Cash Cycle Time

Tags: Glossary

The time it takes for cash to flow back into a company after it has been spent for raw materials. Note that this is a measure of when the financial transaction occurs, not when stock movement happens. There are occasions where C2C is negative, indicating that payment is received from sales of the product before the supplier is paid. Synonym Cash Conversion Cycle. Calculation: Total Inventory Days of Supply + Days of Sales Outstanding - Average Payment Period for Material in days

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