Cash Conversion Cycle (CCC) Calculator

Your details

Use Annual for full-year financial statements. Use Quarterly if you are working from a 10-Q or a single quarter of data.
Net sales or total revenues for the period, from the income statement.
USD
Direct costs to produce the goods sold: materials, direct labor, manufacturing overhead.
USD
Average of opening and closing inventory for the period. If you only have one balance, use it as-is.
USD
Average trade receivables (money owed by customers) over the period.
USD
Average trade payables (money owed to suppliers) over the period.
USD
Cash Conversion CycleEfficient (31-60 days)
55.7days

DIO + DSO - DPO: total days cash is tied up in operations

Days Inventory Outstanding (DIO)66.2days
Days Sales Outstanding (DSO)32.9days
Days Payable Outstanding (DPO)43.3days
Operating Cycle99days
DIO (Inventory days)66.2
DSO (Receivables days)32.9
DPO (Payables days - offset)43.3

Your CCC is 55.7 days.

  • A CCC of 55.7 days is solid. Most product businesses target 30-60 days.
  • The largest contributor to your cycle is inventory (DIO) at 66.2 days. Reducing this has the greatest impact on cash flow.
  • Your DPO of 43.3 days offsets 43.3 days of the cycle. Negotiating longer supplier payment terms could improve this further.

Next stepTrack CCC quarterly and compare it to industry peers. Even a well-optimized cycle can drift upward as the business scales.

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