The Cash Conversion Cycle: Definition, Formula & Example


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question 1 of 3

Which component piece of the cash conversion cycle shows improvement if the number of days increases?

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1. How long is the cash conversion cycle if DIO is 100 days, DSO is 24 days and DPO is 32 days?

2. If the DPO is greater than the DIO + DSO, what is the result?

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About This Quiz & Worksheet

You can assess your understanding of the cash conversion cycle (CCC) with this interactive quiz and printable worksheet. To pass the quiz, you'll need to know the parts of this cycle and the formulas associated with it.

Quiz & Worksheet Goals

You'll get to check your familiarity with:

  • A result of the DPO being greater than the DIO plus DSO
  • Calculating the DIO
  • A componene of the cycle that shows improvement if the number of days increases
  • Calculating the length of the CCC

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the lesson on the cash conversion cycle
  • Information recall - access the knowledge you have gained about finding days payables outstanding (DPO) and days inventory outstanding (DIO)
  • Knowledge application - use your knowledge to answer questions about making calculations with the CCC

Additional Learning

Learn more about this cycle by using the lesson called The Cash Conversion Cycle: Definition, Formula & Example. This lesson helps you:

  • Examine the purpose of the CCC
  • Identify important pieces needed to calculate the cash conversion cycle
  • Practice using the CCC