Cash Conversion Cycle Calculator

Cash Conversion Cycle Calculator

Find out how many days it takes your business to convert stock and invoices into cash. A shorter cycle means healthier cash flow.

Your total sales for the last 12 months

Direct costs of producing what you sell

Total currently owed to you by customers

Current stock on hand (enter 0 if service business)

Total you currently owe to suppliers

For benchmark comparison

Your Cash Conversion Cycle

days
DSO (days to collect)
DIO (days stock held)
DPO (days to pay)
Industry avg CCC

How to improve your cycle

    How This Calculator Works

    The Cash Conversion Cycle measures the total time (in days) it takes to turn investments in stock and resources into cash from sales:

    CCC = DIO + DSO − DPO

    DIO = (Inventory / COGS) x 365 — How long stock sits before it is sold.

    DSO = (Receivables / Revenue) x 365 — How long customers take to pay.

    DPO = (Payables / COGS) x 365 — How long you take to pay suppliers.

    A lower CCC is better. A negative CCC means you collect before you pay.

    This calculator is for educational purposes only and does not constitute financial advice. Consult a qualified accountant for guidance specific to your business.

    This content is for educational purposes only and does not constitute financial advice. Consult a qualified accountant or financial adviser for guidance specific to your business.

    Privacy Policy · Terms of Use · Contact