What this calculator does
Cash conversion cycle works out days between paying for inventory and collecting cash from its sale. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaDSO = Avg receivables / (Revenue/days); DIO = Avg inventory / (COGS/days); DPO = Avg payables / (COGS/days); CCC = DSO + DIO − DPO
The inputs explained
| Field | What to enter |
|---|---|
| Average accounts receivable ($) | A number, measured in your currency. Starts at 90000. |
| Average inventory ($) | A number, measured in your currency. Starts at 70000. |
| Average accounts payable ($) | A number, measured in your currency. Starts at 60000. |
| Revenue for the period ($) | A number, measured in your currency. Starts at 1200000. |
| Cost of goods sold for the period ($) | A number, measured in your currency. Starts at 800000. |
| Days in the period | A number. Starts at 365. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with average accounts receivable
Every other input is held at the calculator’s starting values while average accounts receivable varies. Select any row to load that scenario into the calculator.
How the answer changes with average accounts receivable
| Average accounts receivable ($) | Cash conversion cycle | Days sales outstanding (DSO) | Days inventory outstanding (DIO) |
|---|---|---|---|
| 45,000 | 18.3 days | 13.7 days | 31.9 days |
| 67,500 | 25.1 days | 20.5 days | 31.9 days |
| 90,000 | 31.9 days | 27.4 days | 31.9 days |
| 135,000 | 45.6 days | 41.1 days | 31.9 days |
| 180,000 | 59.3 days | 54.8 days | 31.9 days |
| 270,000 | 86.7 days | 82.1 days | 31.9 days |