easy · Investment Banking valuation-core

What does a Cash Conversion Cycle (CCC) of 60 days signify for a manufacturing company?

1. The company has 60 days of cash on hand to cover operating expenses.
2. The company pays all its suppliers within 60 days of receiving an invoice.
3. It takes 60 days to convert investment in inventory into cash from sales.
4. The company's inventory sits on the shelf for exactly 60 days before being sold.

Sign up free to see the explanation and track your rank →