The Income/Outcome^® Contextuary

a visual glossary of corporate finance

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We use "business visualization" to graphically simplify complex business concepts (and increase business acumen). To get more information on business visualization, please see "The Company Board" (our business results visualizer) and Income/Outcome (our customizable business simulation).

The following are our generic explanations of common corporate financial terminology. Actual meanings can vary wildly from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"

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Cash Conversion Cycle

Calculation: CCC = DIO + DSO - DPO
DIO = Days Inventory Outstanding
DSO = Days Sale Outstanding (DSO)
DPO = Days Payable Outstanding

The ratio shows how quickly inventories and receipts are converted into Cash.

The number indicates how long your cash is tied up in inventories and receivables (before you get it back from your customer); therefore a lower number is preferred.

Full it flag term list.

The Income/Outcome® Contextuary

a visual glossary of corporate finance

Cash Conversion Cycle

The Income/Outcome^® Contextuary