# Cash Conversion Cycle (CCC) [What Is the Cash Conversion Cycle (CCC)? | Investopedia](https://www.investopedia.com/terms/c/cashconversioncycle.asp) - Working Capital = Current Assets - Current Liabilities, see [[balance-sheet]] - Liquidity - cash needed in short term to finance operations - Goal is to minimize while being able to pay bills - **Cash Conversion Cycle** = Receivables Days + Inventory Days - Payable Days - **Working Capital Needed** = Cash Conversion Cycle \* Sales / Day - [[cashflow|Cash Flow]] Efficiency - Goal is lowest possible CCC while paying your bills -- low Receivables, low Inventories, high Payables - Challenge: your customers and suppliers want the same thing.