← Back to glossary Category: Financiar · Acronym: CCC Cash Conversion Cycle (CCC) Quick answer: The number of days cash stays locked in operations: inventory + receivables − payables to suppliers. Key takeawaysDIO — reduce locked stock (better turnover)DSO — collect faster from customersDPO — negotiate better supplier terms What CCC is Cash Conversion Cycle (CCC) = DIO (days of inventory) + DSO (days sales outstanding) − DPO (days payable outstanding). It measures how long from paying for goods to collecting money from the customer. Why it matters to the board CCC is the ultimate measure of working-capital efficiency. A lower CCC frees cash without external financing. Every day cut from the cycle means money available for growth. The three levers DIO — reduce locked stock (better turnover) DSO — collect faster from customers DPO — negotiate better supplier terms How Azuvio helps Azuvio acts on DIO: through forecasting, correct reorder points and dead-stock reduction, it lowers days of inventory and thus CCC, freeing working capital. Frequently askedIs a low CCC always good?Generally yes — it means cash freed faster. Some models (retail) can even have negative CCC (you collect before paying the supplier).Which lever does Azuvio act on?On DIO (days of inventory): through forecasting and correct replenishment it reduces locked stock, the operational component of CCC. Where Azuvio fitsSoftware OMSConectori ERPSoftware WMS Related termsDSO (Days Sales Outstanding) — Average number of days from invoice issue to cash collection. Key cash-flow indicator.DPO (Days Payable Outstanding) — Average number of days from supplier invoice receipt to actual payment.Working capital — The difference between current assets and current liabilities — the cash a company has to fund daily operations. A key financial-health indicator.Inventory turnover — How many times stock is fully sold and replenished in a period — a measure of capital efficiency. Last updated: 2026-07-06