Cash Conversion Cycle Calculator
Calculate the cash conversion cycle to measure how efficiently a company converts investments to cash.
Cycle Components
45 days
0 days120 days
35 days
0 days90 days
30 days
0 days90 days
Revenue Data
$1,000,000
$100,000$10,000,000
Cash Conversion Cycle
50 days
Efficient cash conversion
Operating Cycle
80 days
DIO + DSO
Working Capital Needed
$136,986
Daily Revenue
$2,740
Payables Offset
$82,192
Cycle Breakdown
Days Inventory (DIO)+45 days
Days Sales Outstanding (DSO)+35 days
Days Payables Outstanding (DPO)-30 days
Cash Conversion Cycle50 days
Working Capital Impact
Inventory Investment$123,288
Receivables Investment$95,890
Less: Payables Financing-$82,192
Net Working Capital Needed$136,986
Cash Conversion Cycle Formula
CCC = DIO + DSO - DPO
Negative CCC
Companies like Amazon achieve negative CCC by collecting from customers before paying suppliers.
Improving CCC
Reduce inventory days, collect receivables faster, negotiate longer payment terms with suppliers.
Industry Variation
Service companies have shorter cycles. Manufacturing and retail typically have longer cycles.