Calculate CCC and explain which component created the cash movement.
CCC = DIO + DSO - DPO 48 days 62 days Last quarter DIO was 40, DSO was 34, and DPO was 26. This quarter DIO is 44, DSO is 39, and DPO is 21. Average daily operating cost exposure is $36,000. What changed? Cash Conversion Cycle bridge The common trap is reporting CCC moved by 14 days without naming which operating choices created those days. Step 1 Last quarter CCC = 40 + 34 - 26 = 48 days Start with the baseline clock so the movement has a reference point. Step 2 This quarter CCC = 44 +…
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