The number of days it takes to convert investments in inventory and other resources into cash flows from sales.
Formula: CCC = Debtor Days + Inventory Days − Payable Days
How to read it: Negative CCC = exceptional (collect before you pay). 0–30 days = very efficient. 30–60 days = average. > 60 days = capital-intensive or inefficient. Most retailers and e-commerce businesses aim for negative CCC.
The CCC is the definitive integrated efficiency metric, combining receivables, inventory, and payables management into a single cash timing view. Negative CCC (like Amazon and Zara) means the business collects cash before paying suppliers — a massive competitive advantage.