Cash Conversion Cycle (CCC): Definition, Formula and UK Benchmarks
The cash conversion cycle (CCC) measures the number of days it takes your business to convert its investment in stock and other resources into actual cash from sales. Think of…
James Harford
Days Inventory Outstanding (DIO): Definition, Formula and UK Benchmarks
Days inventory outstanding (DIO) is the average number of days your business holds stock before selling it. If you run a product-based business, DIO might be the most important working…
Creditor Days (DPO): Formula, Calculation & UK Benchmarks
Days payable outstanding (DPO) is the average number of days your business takes to pay its suppliers after receiving an invoice. In the UK, DPO is more often called creditor…
Debtor Days (DSO): Formula, Calculation & UK Benchmarks
Days sales outstanding (DSO) is the average number of days it takes your business to collect payment after making a sale on credit. In the UK, DSO is usually called…
What is Working Capital, and Why It’s Crucial for Your Business
Cash flow issues are one of the leading causes of business failure, and effective working capital management can make all the difference. Working capital might sound like a technical term,…