Cash Conversion Cycle Calculator (DIO, DSO, DPO)
Days a business waits between paying for stock and collecting from customers: days of inventory, days of sales outstanding, days payable, and the net cycle.
Results
What this tool does
The cash conversion cycle counts the days your money is tied up: days the stock sits (DIO) plus days customers take to pay (DSO), minus days you take to pay your own suppliers (DPO). A shorter cycle means less cash is locked in working capital, and a negative one means suppliers finance the business, as in some retailers. Use the figures for the same year, take stock and payables at cost against the cost of goods sold, and receivables against revenue; averages over the year are better than a single year-end snapshot.
Formula
DIO = stock ÷ COGS × 365 · DSO = receivables ÷ revenue × 365 · DPO = payables ÷ COGS × 365 · CCC = DIO + DSO − DPO
Variables
| Symbol | Meaning | Unit |
|---|---|---|
iv | Inventory (stock) at cost | — |
rc | Accounts receivable (owed by customers) | — |
pa | Accounts payable (owed to suppliers) | — |
cg | Cost of goods sold | — |
rv | Revenue | — |
CCC | Cash conversion cycle | d |
DIO | Days inventory outstanding (DIO) | d |
DSO | Days sales outstanding (DSO) | d |
DPO | Days payables outstanding (DPO) | d |
Worked example
- Inventory (stock) at cost80,000
- Accounts receivable (owed by customers)120,000
- Accounts payable (owed to suppliers)60,000
- Cost of goods sold600,000
- Revenue900,000
- Cash conversion cycle60.8 d
- Days inventory outstanding (DIO)48.7 d
- Days sales outstanding (DSO)48.7 d
- Days payables outstanding (DPO)36.5 d
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The tool works with whatever currency you use for the inputs; it does not convert between currencies.