| A financial ratio showing for how long a company has to finance its own stock/inventory. It measures the number of days between the initial cash outflow (when the company pays its suppliers) to the time it receives cash from its customers and is calculated as: stock days + debtor days - creditor days. So a company which keeps its stock for on average of 20 days, which gets paid by its debtors on average within 30 days and which pays its creditors on average within 45 days, has a cash-to-cash cycle of 5 days. Companies that receive cash from their customers at the time of sale and that have their stock under good control, will have a short cash-to-cash cycle.
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