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Cash Conversion Cycle Calculator

See how long cash is tied up in operations.

Result

39.00 days

How it is calculated

The engine adds the days stock sits and the days customers take to pay, then subtracts the days you take to pay suppliers: CCC = DIO + DSO − DPO. All three inputs are in days: DIO (days inventory outstanding), DSO (days sales outstanding) and DPO (days payable outstanding). The result is shown in days with two decimals.

Negative inputs are rejected and return no result, but the CCC itself may be negative when DPO is larger than DIO + DSO. The tool does not compute DIO, DSO or DPO from financial statements; you must supply them, using the same period basis (for example 365 days) for all three.

Worked example

Take DIO = 45, DSO = 32 and DPO = 38. Stock and receivables together tie up 45 + 32 = 77 days. Subtracting the 38 days of supplier credit gives 77 − 38 = 39.00 days. Cash is therefore out of your hands for about 39 days between paying suppliers and collecting from customers.

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Common mistakes

  • Computing DIO, DSO and DPO with different day counts (360 for one, 365 for another), which distorts the sum.
  • Adding DPO instead of subtracting it; longer supplier payment terms shorten the cycle.
  • Entering a negative DPO or DIO to mean 'none'; negative values return no result, so enter 0 instead.
  • Reading a negative CCC as an error: it simply means suppliers are paid later than stock is sold and collected.
  • Using DIO based on revenue instead of cost of goods sold when the figure was defined on COGS.

Sources

About this calculator

This calculator computes the cash conversion cycle, CCC = DIO + DSO − DPO, where DIO (days inventory outstanding) measures how long stock sits before sale, DSO (days sales outstanding) measures how long it takes to collect receivables, and DPO (days payable outstanding) measures how long the company takes to pay its own suppliers. The result is the number of days cash is tied up in the operating cycle before it's converted back into cash from sales — a shorter or even negative CCC (common in retail) means the company is financing operations with supplier credit rather than its own cash.

CFOs, working-capital analysts, and credit analysts use CCC to benchmark operational efficiency and liquidity management against industry peers, and it's a standard metric in financial statement analysis courses.

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Comments (1)

  • Editorial team

    The cycle is a single number in days, but the cash behind it is not. DSO is normally measured on revenue while DIO and DPO use cost of goods sold, so size each piece separately: receivables are about DSO times daily revenue, inventory about DIO times daily COGS, and payables about DPO times daily COGS. Adding the three days before sizing them hides which lever frees the most cash. Which industry are you benchmarking, and which of the three days moves most for you?

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