Calculate the cash conversion efficiency, an efficiency ratio that measures how efficiently a company converts its sales into cash. It is also known as the cash conversion ratio.

The cash conversion efficiency ratio is calculated by dividing the operating cash flow by the revenue. It indicates how much of a company’s sales are converted into cash. A higher cash conversion efficiency ratio is generally favorable, as it suggests that the company is able to convert its sales into cash more efficiently.

The formula is as follows:

\[\text{Cash Conversion Efficiency Ratio} = \text{Operating Cash Flow} / \text{Revenue}\]

Also known as: CCE, cash efficiency ratio.

No programming experience? With the Finance Toolkit MCP server, AI assistants such as Claude and ChatGPT can calculate the Cash Conversion Efficiency for you. Just ask in plain English.

Calculate the Cash Conversion Efficiency in Python

The Cash Conversion Efficiency is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_cash_conversion_efficiency as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

toolkit.ratios.get_cash_conversion_efficiency()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.2844 0.3098 0.2884 0.3024 0.2679
TSLA 0.2136 0.1807 0.137 0.1528 0.1555

Parameters

get_cash_conversion_efficiency accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Days of Inventory Outstanding Days of Sales Outstanding Operating Cycle Accounts Payables Turnover Ratio Days of Accounts Payable Outstanding Cash Conversion Cycle Receivables Turnover SGA to Revenue Ratio Fixed Asset Turnover Operating Ratio Research and Development Ratio Selling and Marketing Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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