Cash conversion cycle (CCC): Definition, Formula & Why It Matters
Also called: CCC
The cash conversion cycle measures how many days it takes to turn money spent on inventory back into cash from sales. A shorter cycle means your money returns faster and you can reinvest sooner. For marketplace sellers, how long inventory sits is usually the biggest driver.
Cash conversion cycle (CCC) formula
Example
If gear sits 60 days and Reverb pays out quickly, your CCC is roughly your days-to-sell.
Why it matters for Reverb sellers
The faster your cash conversion cycle, the more times the same dollar earns you margin in a year. Speeding it up, mainly by selling faster, is one of the most powerful ways to grow without outside financing.
How Verbstack helps
Verbstack tracks how long inventory takes to sell, the main lever in your cash conversion cycle, so you can shorten it.
Try it yourself with the Inventory Turnover Calculator.
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