Cash Conversion Cycle Calculator
Compute the cash conversion cycle (CCC) to learn how long cash is tied up between paying suppliers and collecting from customers. Provide days inventory outstanding (DIO), days sales outstanding (DSO), and days payable outstanding (DPO).
CalcSimpler Examples
- DIO 45 days, DSO 38 days, DPO 30 days ⇒ 53.00 days
- DIO 32 days, DSO 35 days, DPO 40 days ⇒ 27.00 days
FAQ
What does a shorter cash conversion cycle mean?
A lower CCC indicates the company recovers cash faster, improving liquidity.
Can the cash conversion cycle be negative?
Yes. A negative value means you collect from customers before paying suppliers, which is common in retail and subscription businesses.
Which inputs can I influence most easily?
Improving collections reduces DSO, while better inventory planning reduces DIO. Negotiating supplier terms can increase DPO.
Additional Information
- Formula: Cash Conversion Cycle = DIO + DSO − DPO.
- Use the result to benchmark periods, compare business units, or monitor operational improvements.
CalcSimpler