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How do you calculate the cash conversion cycle?

How do you calculate the cash conversion cycle?

Accounting Auditing FIN Costing Finance
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Question added by Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products
Date Posted: 2017/07/22
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Mohammed El Tahir Mohammed Yousif
by Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products

CCC = Days of Sales Outstanding PLUS Days of Inventory Outstanding MINUS Days of Payables Outstanding.

CCC = DSO + DIO – DPO.

DSO = [(BegAR + EndAR) / 2] / (Revenue / 365)

Days of Inventory Outstanding.

DIO = [(BegInv + EndInv / 2)] / (COGS / 365)

Operating Cycle = DSO + DIO.

Soliman Abd ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

I agree with your  answer for this question

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