Cash conversion cycle calculator
The cash conversion cycle (CCC) is how many days cash is tied up between paying suppliers and collecting from customers: CCC = days inventory outstanding + days sales outstanding − days payables outstanding.
Your inputs
Enter inventory, accounts receivable, accounts payable, revenue for the period, cost of goods sold for the period, days in the period to see the result.
Inputs
- Inventory, receivables, payables
- Period-end or average balances.
- Revenue and COGS
- For the same period.
- Days
- Period length.
Outputs
- DIO, DSO, DPO
- DIO, DSO, DPO
- Cash conversion cycle
- Cash conversion cycle
How it is calculated
DIO = inventory ÷ COGS × days; DSO = receivables ÷ revenue × days; DPO = payables ÷ COGS × days.
CCC = DIO + DSO − DPO
Worked example (illustrative)
Illustrative only: inventory 100, receivables 200, payables 50, revenue 1,200 and COGS 600 over 360 days give DIO 60, DSO 60, DPO 30 and a CCC of 90 days.
Assumptions and limitations
- Service businesses with no inventory can enter 0 for inventory.
- Balances at one date may not reflect the period.
- A negative cycle means suppliers fund operations.
Questions and answers
What does a shorter cycle mean?
Less cash is tied up in operations.
Can the cycle be negative?
Yes, when a company collects before it pays suppliers.
Why use COGS for DIO and DPO?
Inventory and payables are carried at cost.
How does it relate to working capital?
The cycle drives how much working capital the business needs.
Sources
Content reviewed October 9, 2026 by the SourceX Partnerships Team. Results are calculated in your browser; nothing you type is stored.