Cash Conversion Cycle Benchmark Gap Calculator

The cash conversion cycle (CCC) captures how long it takes to turn inventory purchases into cash collections. Enter your days inventory, sales, and payable values to pinpoint your CCC, then compare it with an industry benchmark to spot drag or efficiency in your working capital loop.

Average number of days inventory sits before sale.
Average collection period for receivables.
Average time taken to pay suppliers.
Leave blank to compare against a default 60-day benchmark from general retail studies.

For FP&A benchmarking guidance only.

Examples

  • Retailer with DIO 48, DSO 35, DPO 30, default benchmark ⇒ Cash conversion cycle: 53.00 days. Benchmark gap: -7.00 days (faster than the benchmark).
  • Electronics distributor with DIO 32, DSO 42, DPO 20, benchmark 45 ⇒ Cash conversion cycle: 54.00 days. Benchmark gap: 9.00 days (slower than the benchmark).

FAQ

What if my CCC is negative?

Negative CCC values indicate you collect cash before paying suppliers. That is a healthy signal—enter the values as usual and the calculator will report the favorable gap.

How frequently should I refresh the inputs?

Update the CCC each month or quarter using your latest management accounts so you can compare trends against your chosen benchmark.

Can I use different benchmarks across business units?

Yes. Run the calculator separately for each unit with the relevant benchmark so you can align payment term negotiations and stocking strategies locally.

Additional Information

  • A shorter CCC means capital is recovered faster; focus on inventory turns, invoice velocity, or supplier terms depending on which component dominates the cycle.
  • If you do not have an external benchmark, start with your trailing twelve-month average and update the optional field as new analyst data becomes available.
  • Pair this tool with the Working Capital Ratio and Accounts Receivable Turnover calculators to build a fuller liquidity dashboard.

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