021. CCC / Days Sales of Inventory The Anatomy of Building by Josh Rosenthal

In order to calculate your CCC you have to understand the inputs into the formula. The Days Sales of Inventory tells us how many days of inventory your business holds on average on any given day.

We like quick CCCs. We can't control the CCC unless we actually understand it. If you can sell through your inventory more often (increase sales or decrease inventory) you will see a quicker CCC.

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Josh Rosenthal, founder
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