Cash Conversion Cycle Calculator

Cash Flow Conversion Cycle Calculator

Input Fields

Days Inventory Outstanding (DIO)

DIO

Enter the number of days inventory is outstanding

Days Sales Outstanding (DSO)

DSO

Enter the number of days sales are outstanding

Days Payables Outstanding (DPO)

DPO

Enter the number of days payables are outstanding

CalculateReset

Calculate automaticallyIf enabled, the result will update automatically when you change any value.

Your Results

Cash Conversion Cycle

Leave a Comment

How did this result make you feel?

0😀 Like 0💡 Helpful 0😕 Confused 0😞 Disappointed 0❌ Inaccurate

Cash Conversion Cycle Formula

$$\text{Cash Conversion Cycle} = \text{Days Inventory Outstanding} + \text{Days Sales Outstanding} – \text{Days Payables Outstanding}$$

Where:

• $$Days Inventory Outstanding (DIO)$$ = Average number of days inventory is held before being sold
• $$Days Sales Outstanding (DSO)$$ = Average number of days to collect payment after a sale
• $$Days Payables Outstanding (DPO)$$ = Average number of days the company takes to pay its suppliers

The Cash Conversion Cycle (CCC) is a key financial metric that shows how long a company’s cash is tied up in its operations. It measures the time taken between purchasing inventory and collecting cash from sales, adjusted by the time taken to pay suppliers. A shorter CCC indicates a more efficient company.