CCC (Cash Conversion Cycle)

Private Credit Glossary

Working-capital intensity metric: CCC = DSO + DIO - DPO, measuring the number of days between cash outlay for inventory and cash receipt from customers. A rising CCC consumes free cash flow and signals operational deterioration; in direct-lending underwriting it is monitored alongside the FCF bridge because a short CCC business converts EBITDA to distributable cash more reliably than a working-capital-intensive one.

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