- measurement of money on the move
- 3 parts
- DSO = Days Sales stays outstanding
- how long to collect the money from their customers
- DIO = Days Inventory stays outstanding
- how long to sell inventory
- DPO = Days Payables stays outstanding
- how long to pay for liabilities
- CCCs
- DSO + DIO + DPO
CCC can also be negative → enormous pressure from large suppliers with huge payment Windows → ethical questions with extreme cost cutting in e.g. Fashion Branche → pre-orders: using the customers money to finance the activity
Performance is contextual.