Lugano, Svizzera
Riva Patrizia, Provasi Roberta
Business & Economics Society International (B&ESI) Conferences - 2018-07

The Cash Conversion Cycle (CCC) is a financial index with increasing importance in recent years since analysts and investors consider it effective for financial analyses. The index provides a correct and truthful situation of the company’s ability to cope with its liabilities and allows the company to monitor the cash
cycle with reference to purchase operations, production, and sales of products. The CCC is an index expressed by days, so it is necessary to know the Days’ Inventory Outstanding, the Days’ Sales Outstanding, and the Days’ Payable Outstanding to reach a calculation. The purpose of this research is to analyze
characteristics of the CCC and differences with respect to the other liquidity ratios and its relationship with the most relevant financial ratios through empirical applications to verify if it is a reliable index for making decisions regarding a company’s cash flow strategy.