Cash Conversion Cycle (CCC) Model and Tracking Template (Excel XLSX)

How quickly does your business turn cash back into more cash? This is the heart of what this calculator and tracker will tell you about your business based on a few inputs from your financial statements each period. This can be the difference between surviving or not in the initial stages of an inventory heavy business. Also, for established businesses that are trying to grow revenue faster, having a lower cash conversion cycle is something to keep note of and try to improve over time. It is hard to improve something if you are not implementing tracking techniques. With this template, you can do so.

This model has two parts. The first is a simply tab that displays all the inputs, math / formulas, and outputs that are involved in calculating the cash conversion cycle (CCC).

It requires a few data points to be pulled from the financial statements in order to get the proper cycle length (measured in days).

The first tab also has a cool visualization that makes it easy to see the length of each component of the cycle and adjusts as the inputs change.

The second tab is a tracker for actual CCC data of your organization.

The user can input live financial statement information to see what the cash conversion cycle length was on a quarterly basis. This can be used on any time-frame as long as the inputs are for the same period.

There are a total of 20 periods that can be tracked at one time. Visualizations of this live tracker were built (up to 7) that make it easy to see all the metrics involved within the CCC.

Remember the general goal is to get as short of a CCC as possible. It can actually be negative days if you don't have to pay your bills for inventory until after you actually collect the cash from inventory sold.

This template not only simplifies the calculation of your cash conversion cycle, but also provides robust tracking capabilities for ongoing performance analysis. With intuitive visualizations, you can quickly assess trends and make informed decisions to optimize cash flow management.