Free tool
Cash conversion cycle calculator
See how many days your cash is tied up between paying suppliers and collecting from customers.
Prefer to talk it through? Take the free books check or contact us.
Share
Put this tool on your own site
Free to use. Paste this where you want it to appear. It runs in the visitor's browser, so nothing they enter is sent to us, and the line under it links back to this page.
How it works
How it works
DIO = inventory / COGS x 365. DSO = receivables / sales x 365. DPO = payables / COGS x 365. Cash conversion cycle = DIO + DSO - DPO. Use average balances if you have them.
FAQ
About this calculator
What does the cash conversion cycle show?
How long it takes to turn money spent on inventory back into cash from sales. A shorter cycle means less cash is tied up.
Can it be negative?
Yes. If you collect and sell faster than you pay suppliers, the cycle is negative, which means suppliers are financing part of your operations.
Does it work for a service business?
Mostly the receivables and payables parts do. With no inventory, set inventory to zero.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Is this tax or financial advice?
No. It is a calculator for general information. Check the numbers against your own records, and ask an accountant before you act on them.
Related: accounts receivable turnover calculator, inventory turnover calculator. See all free tools. More free tools: 1099 contractor payment tracker, Bank reconciliation difference finder, Quarterly estimated tax calculator, or see all free tools.
Free
Month-End Close Checklist (PDF)
The five-day close, one page to print. Enter your email and we send a link to confirm it is yours, then the download. We may email you about new toolkits, and every email has an unsubscribe link.
General information, not tax or legal advice. How we write and check our tools.