How long your cash is locked up between paying for inventory and getting paid for the resulting sale: CCC = DIO + DSO - DPO. For a DTC brand, DIO (how long stock sits before it sells) dominates, DSO is near zero on Shopify/Stripe, and DPO is whatever terms your supplier grants - a 50% deposit upfront makes it effectively negative. It is the single most useful number for understanding whether the business is funding growth or starving for cash. The trap: the accounting CCC only starts when stock lands in your warehouse, so it understates what your bank balance actually feels.
Benchmark. Under 60 days is what good looks like on the accounting view. The true cash exposure window often runs 3-6 months once supplier deposits, 60-90 day production lead times and 15-30 days of sea freight stack on top of DIO.