mostlymetrics.com · 2022-08-23
· 1380d
Cash is King: Mastering the Cash Conversion Cycle
The article explains the cash conversion cycle (CCC) metric, which measures the time required to convert investments in inventory and resources into customer cash flows. It demonstrates how companies like Amazon, Walmart, and Costco optimize CCC through inventory reduction, faster receivables collection, and extended payables, enabling growth without external capital.
Metrics in this report
Cash Conversion Cycle
70days
best-in-class
Legacy retail companies (department stores)
Cash Conversion Cycle
4days
best-in-class
Hyper-efficient retailers (Costco)
Cash Conversion Cycle
7days
best-in-class
Hyper-efficient retailers (Walmart)
Cash Conversion Cycle
-26days
best-in-class
E-commerce and logistics optimization (Amazon)
Cash Conversion Cycle
36days
target
Direct-to-consumer growth-stage companies (Gymshark)