Measures the time taken between outlaying cash for raw material and receiving cash from product sales.

What it Measures ?

Days to convert inventory investment into cash.

Relevant StakeHolders 

Finance Manager, Procurement Manager

In-depth Use Case / Real-world Example

A company manufacturing consumer electronics calculates Cash-to-Cash Cycle Time by tracking the time it takes from paying suppliers for raw materials to receiving payment from customers for the finished products. For example, if the cycle is 60 days, this means it takes 60 days for the company to convert its investment in raw materials into cash flow from sales. Shortening this cycle can improve liquidity and reduce financial strain.