Business
Cash Conversion Cycle Calculator
Enter DIO, DSO and DPO in days to see the cash conversion cycle.
What is the cash conversion cycle?
The cash conversion cycle measures how many days working capital is tied up between paying for stock and collecting cash from customers. CCC = DIO + DSO − DPO: days inventory outstanding plus days sales outstanding minus days payables outstanding. A shorter (or negative) CCC means suppliers effectively help fund operations; a long positive CCC means cash sits in stock and receivables. Pull the three inputs from your accounting averages for a recent period rather than a single invoice. Improving any leg — faster stock turns, quicker collections or negotiated payables — moves the total. Stock pace links to inventory turnover; margin context sits in gross margin.
Worked example
DIO 45 + DSO 30 − DPO 25 = CCC of 50 days.
Limits and assumptions
Snapshot averages only. Does not forecast cash by week or model growth funding needs.
Frequently asked questions
What do CCC, DIO, DSO and DPO mean?
CCC is the cash conversion cycle (days cash is tied up). DIO is days inventory outstanding (how long stock sits). DSO is days sales outstanding (how long customers take to pay). DPO is days payables outstanding (how long you take to pay suppliers).
Is a negative CCC good?
It can be — you may collect before you pay — but check that payables terms stay healthy with suppliers.
Where do I get the day figures?
From accounting: inventory, receivables and payables turns converted into days for the period you care about.
Does CCC include bank loans?
No — it is an operating working-capital measure, not a full financing picture.