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How long is cash tied up in operations?
Combine inventory, collection, and payment days into one operating cycle.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Inventory days (DIO)
- 60 days
- Collection days (DSO)
- 45 days
- Payment days (DPO)
- 30 days
Cash conversion cycle
Example result only, not a forecast or promise.
- Inventory + collections
- 105 days
- Supplier financing period
- 30 days
What to do with this result
Break the cycle into receivables, inventory, and payables by segment; check customer and supply risks before changing terms.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Cash conversion cycle = DIO + DSO − DPO.
Assumptions and limitations
- Days must use consistent periods and accounting definitions.
- A negative cycle can be valid. The model does not establish a target for your sector.