Recall the CCC formula, component meanings, and dashboard interpretation traps.
CCC is just finance CCC points to operating owners What is the cash conversion cycle formula? CCC = DIO + DSO - DPO. Inventory and receivables add days; payables subtract days because supplier credit offsets the cycle. CCC What do the three CCC components point to? CCC worsened because DPO fell. What is the reflex and the skilled read? Always bridge the movement by component before assigning work. CCC is just a finance ratio; operations cannot act on it. Your line CCC is a clock built from operating choices: stock days, customer payment days, and supplier payment days. Letting the…
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