Final answer:
The Cash Conversion Cycle (CCC) is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales.
Step-by-step explanation:
The Cash Conversion Cycle (CCC) is a measure of the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. It is used to evaluate the efficiency and effectiveness of a company's cash management and liquidity. To calculate the CCC for Walt Disney Co for the 2020-2021 years, you need three key components:
(1) Days Inventory Outstanding (DIO), which measures how long it takes for inventory to turn over. (2) Days Sales Outstanding (DSO), which measures the average time it takes to collect the payment from customers. (3) Days Payables Outstanding (DPO), which measures the average time it takes to pay suppliers.
The CCC can be calculated as CCC = DIO + DSO - DPO. Once you have the values for DIO, DSO, and DPO for Walt Disney Co for the 2020-2021 years, plug them into the formula to calculate the CCC. For example, if DIO is 50 days, DSO is 40 days, and DPO is 30 days, the CCC would be 60 days (50 + 40 - 30).