Cash Conversion Cycle: Excel Quarterly Tracker

Cash Conversion Cycle (CCC) is an efficiency metric that comes up in the management of any business that deals with inventory. The goal is to figure out how long it will take (in days) to turn cash that is invested into inventory back into profits. In order for any organization to calculate this, they will just need a few items from the financial statements.

Pricing

Once purchased, the template will be sent to the PayPal/purchaser e-mail. This template is included in the Accounting templates bundle.

To improve your CCC, it will likely help to keep track of payables and receivables.

The excel template offers a standalone single period model that demonstrates all the nuanced logic and math that must be done to calculate the CCC metric. 

Additionally, there is a quarterly tracker that spans five years that lets the user enter actual data and the CCC metric (measured in days) will automatically populate for comparative analysis. There is also a goal row that can be defined and a percentage difference will display based on how close or far the actual is from goal. 

In order to calculate the cash conversion cycle metric, the user simply needs a few items from the financial statements. They include:

  • Revenue in period
  • Cost of Goods Sold (COGS) in period
  • Beginning and ending inventory value
  • Beginning and ending accounts receivable value
  • Beginning and ending accounts payable value
The above items are measured against each other and based on the number of days in the measured period, the average days inventory outstanding, average days sales outstanding, and average days payables outstanding can be calculated. All of those day value are added together in order to get the CCC metric.

All calculations are shown within the excel template and an add-on value includes a wide range of visualizations to track all components of this efficiency metric as well as the metric itself as well as how actual compares to goal.

Currently working on a by-day chart that shows the cash conversion cycle of a single period as far as total days. This is tricky.

New Visualization Added
The following visualization didn't show in the video because I built it after, but on the static single period tab, I found a way to visually display the total days per each stage so you can really see how cash moves through each state and finally gets back to 'cash collected' and how long it takes (note the data for this is different then the first screenshot you see with yellow inputs below this):

days per stage cash conversion cycle



Screenshots of Template:
cash conversion cycle data

cash conversion cycle tracking

cash conversion cycle visualization

revenue and cogs visual

3D % bar chart

comparative cash conversion cycle 3D bar chart

gross profit visual

gross profit margin visual

accounting visualization