The time it takes for a company to convert its investments in inventory and receivables back into cash. It measures the efficiency of working capital management by combining days sales outstanding, days inventory outstanding, and days payable outstanding.
Combines 'cash' from Old French 'cache' and 'conversion' from Latin 'convertere' (to turn around). This metric emerged in the 1960s as businesses became more sophisticated about managing working capital and cash flow timing.
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