Tool

Cash Conversion Cycle Calculator

Calculate DIO, DSO, DPO, cash conversion cycle, and how much cash is tied up while inventory and invoices turn into cash.

How to read the cash conversion cycle

The cash conversion cycle estimates how many days cash is tied up between paying for delivery costs and collecting customer payments. A longer cycle can create cash pressure even when sales are growing.

Use this with working capital, DSO, AR turnover, and cash flow forecasting to decide whether to reduce inventory/WIP, collect invoices faster, negotiate supplier terms, or use financing.