Calculator

Cash Conversion Cycle Calculator

Find out how many days cash stays tied up in inventory and receivables, net of how long you take to pay suppliers.

← Read the The Cash Conversion Cycle concept page

Revenue (annual)

Cost of goods sold (annual)

Accounts receivable

Accounts payable

Inventory

Cash conversion cycle

4.1 days

DSO

9.1 days

DIO

10.1 days

DPO

15.2 days

How the math works

DSO = ($6,000.00 / $240,000.00) × 365 ≈ 9.1 days
DIO = ($2,000.00 / $72,000.00) × 365 ≈ 10.1 days
DPO = ($3,000.00 / $72,000.00) × 365 ≈ 15.2 days

Cash conversion cycle = DSO + DIO − DPO ≈ 4.1 days

Cash is tied up for about 4.1 days between spending it on inventory and getting it back from customers, net of the delay in paying suppliers.