Cash Conversion Cycle Calculator
Combine days sales outstanding, days inventory outstanding and days payable outstanding to see how long cash is tied up in operations.
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Enter DSO, DIO and DPO to see the cash conversion cycle.
Worked example
With these example inputs:
- Days sales outstanding (DSO)45
- Days inventory outstanding (DIO)60
- Days payable outstanding (DPO)30
Cash conversion cycle: 75
- Days sales outstanding45
- Days inventory outstanding60
- Days payable outstanding30
Frequently asked questions
How is the cash conversion cycle calculated?
Add DSO and DIO, then subtract DPO. With 45 + 60 - 30, the cash conversion cycle is 75 days.
What does a negative cash conversion cycle mean?
It means suppliers fund your operations: you collect from customers and sell inventory before you have to pay suppliers. Large retailers often run a negative cycle.