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The cash conversion cycle (CCC) measures how long cash is tied up in inventory and receivables before you get paid. Enter days inventory outstanding (DIO), days sales outstanding (DSO), and days payables outstanding (DPO) to compute CCC and scenario test improvements. Use it to free working capital and negotiate better terms.

Cash Conversion Cycle Calculator

Measure how efficiently your business manages working capital

Working Capital Components

days

Average days to sell inventory

days

Average days to collect payment

days

Average days to pay suppliers

CCC Formula:

CCC = DIO + DSO - DPO

Lower is better; negative means cash comes in before paying out

Cash Cycle Analysis

Enter values to calculate CCC

Or click "Fill Example" to see a demo

Frequently Asked Questions

What is a good CCC?

Lower is better; negative CCC means you get paid before paying suppliers.

Retailers with fast turns often achieve near‑zero or negative CCC.

How to reduce DSO?

Tighten credit policies, offer early‑pay discounts, invoice promptly, and automate collections with reminders and portal payments.

How to reduce DIO?

Improve demand forecasting, reduce SKU bloat, increase reorder frequency, and accelerate slow‑moving stock with targeted promos.

How to increase DPO responsibly?

Negotiate longer terms, batch payables, and use supply‑chain financing—without jeopardizing vendor relationships.

CCC vs working capital?

CCC is a time measure; working capital is a dollar measure.

Improving CCC usually frees working capital cash.

Seasonality effects?

Track CCC monthly and compare YoY.

Seasonal inventory swells often distort one‑off readings.

About This Page

Editorial & Updates

  • Author: SuperCalc Editorial Team
  • Reviewed: SuperCalc Editors (clarity & accuracy)
  • Last updated: 2026-01-13

We maintain this page to improve clarity, accuracy, and usability. If you see an issue, please contact hello@supercalc.dev.

Financial/Tax Disclaimer

This tool does not provide financial, investment, or tax advice. Calculations are estimates and may not reflect your specific situation. Consider consulting a licensed professional before making decisions.